AM Best has affirmed Ecclesiastical Insurance Office plc’s (EIO) Financial Strength Rating of A (Excellent) and its Long-Term Issuer Credit Rating of “a” (Excellent). Additionally, the agency has confirmed a Long-Term Issue Credit Rating of “bbb” (Good) on the GBP 106,450,000, 8.625% non-cumulative irredeemable preference shares issued by EIO. The outlook for these ratings remains stable.
These ratings highlight EIO’s very strong balance sheet strength, adequate operating performance, neutral business profile, and effective enterprise risk management.
EIO’s robust balance sheet is supported by risk-adjusted capitalization that AM Best expects to stay at the strongest level, as indicated by the Best’s Capital Adequacy Ratio (BCAR). Despite conservative reserving practices, EIO’s exposure to certain volatile classes and a high allocation to equity investments introduce sensitivity to market fluctuations.
EIO’s operating performance has seen some volatility, mainly due to its investment portfolio. However, the company has achieved profitability in four of the last five years (2019-2023), including a notable post-tax profit of GBP 37.5 million in 2023, compared to GBP 2.8 million in 2022. This profit was driven by positive underwriting and investment results, with an insurance service result of GBP 70.7 million for 2023, despite experiencing its largest underwriting loss to date.
With a strong presence in the United Kingdom, EIO specializes in insurance products and risk management for the faith, heritage, charity, and education sectors. It reported insurance revenue of GBP 586.5 million in 2023, up from GBP 534.9 million in 2022. The company also operates through subsidiaries in Australia, Ireland, and Canada and is a member of the Benefact Group plc.
For more details on these Credit Ratings and other pertinent disclosures, please visit AM Best’s Recent Rating Activity web page. For guidance on the use of AM Best’s ratings and assessments, see the Guide to Proper Use of Best’s Ratings & Assessments.
AM Best, headquartered in the U.S., operates globally with offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. For further information, visit www.ambest.com.
