AM Best affirms the Financial Strength Rating (FSR) of "A-" (Excellent) and the Long-Term Issuer Credit Rating (LT ICR) of "a-" (Excellent) of Ørsted Insurance A/S (ORIAS) (Denmark). The outlook of these Credit Ratings is stable. ORIAS serves as the captive insurer for Ørsted A/S, a global sustainable energy group headquartered in Denmark. The ratings reflect ORIAS' very strong balance sheet strength assessment, adequate operating performance, neutral business profile, and appropriate enterprise risk management. The captive’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is at the strongest assessment level. AM Best notes that the company also benefits from a very conservative and liquid investment portfolio. A partially offsetting factor is the captive’s high dependence on reinsurance, which is mitigated by its longstanding relationship with a highly rated reinsurance panel. The adequate operating performance assessment reflects ORIAS’ track record of good but volatile underwriting results, demonstrated by a 10-year (2015-2024) weighted average combined ratio of 75%. In 2024, ORIAS reports an improved net profit of US$22.1 million (DKK 158.5 million), compared with US$12.5 million (DKK 84.4 million) profit reported in 2023, driven mainly by premium growth. As a captive monoline insurer providing commercial property and construction insurance covers for its parent, ORIAS’ underwriting portfolio is concentrated by line of business but well-diversified geographically.
