A.M. Best Affirms Ratings of Energas Insurance (L) Limited

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Energas Insurance (L) Limited (Energas) (Malaysia). The outlook for both ratings is stable. Energas is a sole captive of Petroliam Nasional Berhad (Petronas), the national oil and gas company of Malaysia.

The ratings reflect Energas’ strong risk-adjusted capitalization, which is supported by a comprehensive reinsurance program and prudent investment portfolio comprised solely of cash and cash equivalents. The ratings also consider Energas’ excellent earnings track record owing to an efficient operating structure and favorable claims experience. As an integral part of Petronas’ commercial operations, Energas is able to leverage Petronas’ market dominance, which has kept claims experience low.

Offsetting rating factors include claims volatility from a limited scope of assumed risk and a smaller premium base as Petronas scales back on capital expenditures.

Energas is well-positioned at its current rating level.

Negative rating actions may arise from a material deterioration of Energas’ risk-adjusted capitalization due to a material repatriation of capital.

A.M. 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 www.ambest.com/captive.

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

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160303006323/en/

A.M. Best
Faith Tan, +(65) 6589 8400, ext. 212
Associate Financial Analyst
[email protected]
or
Chi Yeung Lok, +(65) 6589 8400, ext. 211
Senior Financial Analyst
[email protected]
or
Christopher Sharkey, +(1) 908 439 2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best

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