Bermudian-based re/insurer Hiscox’s credit ratings have been affirmed by AM Best.

The company, based in offices on Wessex House in Reid Street, maintains an A financial strength rating from Best for its operating units.

“The rating affirmations of Hiscox, Hiscox Bermuda and Hisco reflect the Hiscox group’s strong consolidated risk-adjusted capitalisation and good financial flexibility,” Best commented.

“The ratings also reflect Hiscox’s strong operating performance, underpinned by an average five-year combined ratio of 86 per cent. Hiscox pursues a successful strategy of balancing volatile international catastrophe and large loss-exposed insurance and reinsurance business with more stable local retail business, which continues to support its profitable performance.”

AM Best said it expected good underwriting performance for 2016 — Hiscox is expected to announce full-year results on February 27 — supported by benign catastrophe experience and strong performance in the group’s local retail business.

The New Jersey-based rating agency added: “AM Best assumes in its projections for the medium term (2017-2018) that a return to average catastrophe experience will result in lower earnings, compared with the strong years of 2012-2015.”

AM Best said: “The ratings of Hiscox Bermuda and Hisco factor in the strategic importance of the companies to the Hiscox group. Each company has established a track record of good operating performance and has made a positive contribution to overall earnings during the past five years. The ratings of Hiscox Guernsey and HICI reflect explicit support from Hiscox Bermuda in the form of reinsurance protection.”

AM Best affirmed the financial strength ratings of A (excellent) and the long-term issuer credit ratings of a+ of Hiscox Insurance Company (Bermuda) Ltd, Hiscox Insurance Company Ltd (Hisco) (UK), Hiscox Insurance Company (Guernsey) Ltd (Hiscox Guernsey), Hiscox Insurance Company, Inc (HICI) (US) and Lloyd’s Syndicate 33, which is managed by Hiscox Syndicates Ltd. At the same time, Best affirmed the long-term ICR of “bbb+” of Hiscox Ltd (Hiscox) (Bermuda), the ultimate non-operating holding company of the Hiscox group of companies.

All ratings were given a stable outlook.