AM Best Affirms Credit Ratings of Evergreen Insurance Company Limited

HONG KONG–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Evergreen Insurance Company Limited (EICL) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.

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The ratings reflect EICL’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

EICL’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), remains at the strongest level, and is underpinned by a low net underwriting leverage, a highly conservative and liquid investment portfolio and comprehensive reinsurance arrangements. Although the company’s capital and surplus has shown a mild downward trend over the last three years due to dividend payouts to its parents (Evergreen International S.A. and Evergreen International Corp.), its BCAR remains at the strongest level. AM Best expects the company to maintain a sufficient buffer in its risk-adjusted capitalisation to support its risk profile over the next three years.

EICL has demonstrated a track record of strong underwriting and operating performance, owing to its group-related business. In view of its high-severity, low-frequency risk profile that involves mainly marine and aviation businesses, the company has ceded more than half of its premiums to a panel of financially sound reinsurers and maintained a low retention ratio. EICL’s net claims experience has been highly favourable over the last few years, while gross losses fluctuated due to a few major loss events in marine and aviation hull. EICL also projects enhanced investment returns in 2023 driven by higher interest rate for USD fixed deposits. Going forward, AM Best expects that EICL’s underwriting results, in particular for its marine business, will continue to be the main driver of its bottom-line results.

As a pure captive of Evergreen Group, EICL’s underwriting book primarily consists of marine, aviation and property risks related to the group’s operations. EICL continues to be an integral part of the group; its risk management is well-embedded into the group’s risk framework and is viewed as appropriate to support its risk profile.

Negative rating actions could occur if there is a significant deterioration in the company’s operating performance, such as it no longer supports the strong assessment. Negative rating actions could also occur if there is significant deterioration in the credit profile of its ultimate parent, Evergreen International S.A. Positive rating actions could occur if there is a significant improvement in the EICL’s risk-adjusted capitalisation and absolute capital size, for example, through capital raising from its shareholders or organic growth from earnings.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Madison Fan
Financial Analyst
+852 2827 3416
[email protected]

James Chan
Director, Analytics
+852 2827 3418
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

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