Updated 27th August 2024
Maritime Mutual’s latest BBB+ rating reflects Equifax’s independent assessment of the Club’s financial security as being ‘Investment Grade’ and presenting a ‘Low Risk’. Equifax Inc. is a consumer credit agency headquartered in the United States and is listed as one of the top three American credit agencies.
Maritime Mutual’s BBB+ rating was based on an open, transparent and auditable ratings assessment process that placed the Club as a leading provider of P&I insurance. Factors included Maritime Mutual’s strong business risk profile as a globally recognised marine insurer together with its audited and sound financial statements and consistent profitability, encompassing Technical Reserves of USD 34.8 million as at 31 December 2023 (an increase of 18% over 2022), Total Equity of USD 36.6 million as at 31 December 2023 (an increase of 63% over 2022), and off balance sheet Assets exceeding USD 73 million. Other important factors included the strength and reliability of Maritime Mutual’s Lloyd’s Syndicate and London Market-based reinsurance programme, its highly efficient but economical management structure, its consistently positive underwriting results and revenue growth, conservative risk management and reinsurance arrangements, and strong liquidity and capital adequacy.
The Maritime Mutual financial rating assessment was accomplished by Equifax Inc. subsidiary, Equifax Australasia Credit Ratings Pty Ltd. Equifax Australasia is a leading assessor of business viability and financial capacity on behalf of both Government and the private sector. It holds an Australian Financial Services License to provide credit ratings to wholesale clients in compliance with the IOSCO Code of Conduct for CRAs. This ensures the independence, quality and integrity of its rating process.
Maritime Mutual’s Directors are very pleased with Equifax’s latest affirmation of the Club’s BBB+ ‘Investment Grade’ and ‘Low Risk’ financial rating, with a Stable outlook, as a reflection of good management and the sustainable exercise of mutuality and care for the interests of the Club’s Members.
MMAL’s healthy capitalisation (USD 36.6 million as at December 2023) provides it with ample capacity to withstand any potential, though unlikely, future underwriting losses. The Group’s regular retention of all earnings, operating as a mutual, has underpinned a steady improvement in its capitalisation to the current levels. MMAL’s liquidity position underpins a strong capacity to sustain the current level of operations and the ability to meet policyholders’ claims. The liquidity is underpinned by a healthy cash balance of USD 66.7 million as at December 2023, representing 16.4x its net claims payable.
To obtain a pdf copy of the Equifax BBB+ Investment Grade Certificate of Financial Viability awarded to Maritime Mutual please click the link below.
24 hr | 7 days per week | 365 days per year
Site by Unbranded Space