AM Best Withdraws Delta Affiliates' Performance Assessment

KUALA LUMPUR, April 16 (Bernama) -- Global credit rating agency, AM Best has affirmed the performance assessment (assessment) of PA-2 (Excellent) of Delta Insurance New Zealand Limited and Delta Underwriting Private Limited.

The companies are assessed on a consolidated basis under their parent, Delta International Limited (Delta), with a stable outlook on the assessment.

Concurrently, AM Best in a statement said it has withdrawn the assessment as the company has requested to no longer participate in AM Best’s interactive performance assessment process.

This assessment reflects Delta’s strong underwriting capabilities, excellent governance and internal controls, strong financial condition, excellent organisational talent, and strong depth and breadth of relationships.

In the credit rating agency’s view, the two affiliated companies exhibit several commonalities and are regarded as strategically and financially important to Delta, providing access to businesses in certain geographic jurisdictions in the Asia Pacific region.

AM Best assesses Delta’s underwriting capabilities as strong, noting that it has consistently recorded profitable underwriting results over recent years across a wide range of product lines and geographic regions. Its specialised underwriting philosophy and risk selection process, supported by in-house underwriting and claims management teams, has enabled rapid growth in its premium base through product and geographic expansion.

The rating agency also assesses Delta’s governance and internal controls as excellent, supported by a sophisticated framework for selecting capacity providers, extensive use of internal and external audits, policies and procedures, quality reviews and ongoing monitoring.

Delta’s financial condition is assessed as strong, supported by a track record of profitable operations, stable income sources and positive cash flow. The organisation does not retain insurance risk. AM Best expects shareholders’ equity to increase supported by positive earnings generation.

Delta is also assessed as having excellent organisational talent, with senior management highly experienced in its lines of business and operating regions. AM Best expects continued development in the quality and quantity of staff as the organisation grows.

-- BERNAMA