Standard and Poor's reaffirms Skuld's 'A' rating with stable outlook

Circular

Published: 1 July 2015

On 30 June 2015, Standard & Poor's Ratings Services reaffirmed its 'A' rating on Norway-based marine insurer Assuranceforeningen Skuld (Gjensidig). The outlook is stable.

Excerpt from the report, 'Rationale': 

Business risk profile: Strong

  • Membership of the International Group of P&I Clubs (IG) provides market access.
  • Skuld is the only P&I Club having its own Lloyd's of London syndicate and a managing agent, which enables itto provide its members with a wider range of marine-related insurance products.
  • One of the most diversified of its IG peers.
  • Increasing brand reputation and sector-leading operating performance.
  • Longstanding relationships with members. 

Financial Risk Profile: Strong

  • Capital adequacy will likely remain above or only just below the 'AA' level.
  • Protection and indemnity (P&I) sector is inherently volatile. IG joint reinsurance program helps to manage exposure.
  • Sector-leading operating performance a ratings strength and a key differentiator.
  • Less-volatile operating performance than most of its IG peers'.