AM Best has awarded a financial strength rating of A- (excellent) to INPEX insurance Ltd (ILL) (Bermuda), in addition to a long-term issuer credit rating of “a–”. The overall outlook of these credit (ratings) is positive. The ratings are a reflection of ILL’s balance sheet strength, which AM assesses to be very high. This is supported by ILL’s risk adjusted capitalisation – assessed at the strongest level as measured by Best’s Capital Adequacy Ratio, as well as its satisfactory operating performance, neutral business profile, and appropriate enterprise risk management. The company’s total capital was strengthened to US$262 million as of 30 June 2022, from US$109 million as of 31 December 2021, following a capital injection from its parent company, INPEX. IIL’s underwriting results over the five year period (FY2017-FY2021) were consistently positive and contributed to an average net combined ratio of less than 40 per cent and an average return on equity of 5 per cent. The positive outlooks mirror A.M. Best’s expectation that ILL will continue to maintain positive operating results, supported by continued premium growth with strong underwriting margins and favourable claims experience for its core lines of business. Negative ratings could transpire if there is a substantial increase in losses caused by a material shift in risk appetite, according to the rating agency.
