Ratings agency AM Best has maintained the Swedish Club’s A- financial strength rating with a negative outlook.
The A rating is an important one for the Gothenburg-based mutual after it lost its S&P Global Ratings’ A credit rating last year. It was downgraded to BBB+ with a stable outlook by S&P Global.
AM Best has a positive view of its outlook. It said: “These ratings reflect the Swedish Club’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.”
AM Best pointed out that the Swedish Club’s free reserves had been depleted in 2021 and 2022 after losses related to underwriting and the financial markets.
But, it said that the conditions are right for it to improve after announcing a 10% general increase in rates at the upcoming 20 February policy renewal.
“The Swedish Club maintains a well-diversified portfolio within the marine insurance market, offering hull and machinery, and P&I types of cover, and benefits from membership in the International Group of P&I Clubs,” AM Best said.
“[The Swedish Club’s] gross written premium increased by 12% in 2021 and AM Best expects further premium growth to be reported for 2022 and 2023, as a result of the club’s general rate increases for its P&I members,” the rating agency added.
Swedish Club managing director Thomas Nordberg, who took over the role this year, has said one of his goals is to improve the club’s ratings.
Commenting on the latest AM Best report, he added: “AM Best’s reaffirmed rating underscores the competitive position and attractiveness of the club as a marine insurance provider.”