Fitch revises Amlin’s outlook to negative
Rating agency Fitch has revised the outlooks of Amlin AG and Amlin Insurance SE, operating companies of insurer MS Amlin, to negative from stable.
According to the rating agency, the actions follow the revision of the outlook of MS Amlin's parent company, Mitsui Sumitomo Insurance Company (MSI), which has an IFS of A, to negative from stable, following the revision of the outlooks on Japan's sovereign rating to negative from stable.
Fitch affirmed the companies insurer financial strength (IFS) ratings at 'A'.
“The ratings of Amlin AG and Amlin Insurance SE are capped by the ratings of MSI. This cap reflects the risk that if MS&AD Group were to come under financial stress, it could seek to extract capital or other resources from MS Amlin to support the rest of the group,” said the rating agency.
Fitch views MS Amlin as “very important” in its strategic status within the MS&AD Group. It said this may be revised to “core” over time with evidence of increased integration and seasoning.
MS Amlin reported gross written premiums of £2.7 billion at the end of 2015, compared with £2.6 billion in 2014.
Fitch suggested the key rating trigger that could result in a downgrade of MS Amlin's IFS ratings would be a downgrade of MSI's IFS rating. The rating agency also said evidence of increased integration between MS Amlin and MS&AD Group could lead to an upgrade of MS Amlin Plc's IDR and subordinated debt rating.
