AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of 'bb+' of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Adamjee's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Adamjee's balance sheet strength is underpinned by its risk-adjusted capitalisation, which strengthened over 2019 to reach the threshold of a very strong level of assessment, as measured Best Capital Adequacy Ratio (BCAR). However, AM Best notes that given Adamjee's significant exposure to
Adamjee has reported solid operating performance in recent years, with a five-year (2015-2019) weighted average return-on-equity ratio of 10.9%. Continued strengthening of underwriting performance in 2019 resulted in Adamjee's overall earnings carrying equal weight between investment and underwriting results, and the company reported consolidated pre-tax profits of
Adamjee maintains a leading competitive position in its domestic market of
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
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