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Credit ratings of Energas Insurance, stable - A.M. Best
Last update: 19/03/2018

KUALA LUMPUR, March 19 (Bernama) -- A.M. Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of 'a' of Energas Insurance (L) Ltd (Energas) Malaysia, and the outlook of these ratings is stable.

Energas is the sole captive insurer of Petroliam Nasional Bhd (Petronas), Malaysia’s national oil and gas company.

The ratings reflect Energas' balance sheet strength, which A.M. Best categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The ratings also incorporate Energas' solid risk-adjusted capitalisation, comprehensive reinsurance program and historically strong operating performance, evidenced by a five-year average combined ratio of approximately 53 per cent.

Partially offsetting these positive rating factors is a reduction in prospective earnings derived from smaller premium volumes as Petronas scales back on its upstream activities.

Nonetheless, A.M. Best expects Energas' active cycle management and efficient cost structure to buffer some of the negative pressure on its combined ratio and to aid in keeping overall earnings positive.