AM Best has affirmed the financial strength rating of ‘A-‘ (excellent) and the long-term issuer credit rating of “a-” (excellent) of Bermuda-domiciled Evergreen Insurance Company Limited (EICL).
The outlook for the ratings is stable, but AM Best has withdrawn them as the company has requested to no longer participate in the interactive rating process.
According to CI DataHub, EICL is a pure captive of Evergreen Group that was formed in 1999 and is managed by Marsh.
Its portfolio primarily consists of marine, aviation and property risks related to the group’s operations.
The company has ceded most of its risk exposures to a panel of reinsurers and maintained a low retention ratio.
EICL’s overall capital position and profitability have been stable over the past five years, owing to prudent underwriting practices, conservative reserving and long-term reinsurance relationships.
The captive’s five-year average return-on-equity ratio was 12.2% (2019-2023).
The company recorded strong double-digit growth in net operating income during the first nine months of 2024, driven by profitable underwriting and higher investment income.
AM Best’s ratings reflect EICL’s balance sheet strength, which it assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect the parental support EICL receives from Evergreen International S.A. and Evergreen International Corporation.
“EICL has historically been a beneficiary of support from its shareholders and the wider parent group,” AM Best said.
“AM Best expects EICL’s shareholders will remain committed and continue to render support to the company over the short to intermediate term in terms of capital, risk management and operations, if needed.”