AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of The West of England Ship Owners Mutual Insurance Association (West or the Club) (Luxembourg). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect West's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
West's balance sheet strength assessment is underpinned by risk-adjusted capitalisation at the strongest level at year-end February 2025, as measured by Best's Capital Adequacy Ratio (BCAR). The Club's balance sheet strength assessment is also supported by a prudent reserving approach and good liquidity. The Club benefits from its membership in the International Group of protection and indemnity (P&I) clubs' pooling agreement and shared reinsurance programme, which allows it to provide the large insurance cover limits required by ship owners.
At year-end February 2025, West reported an overall surplus after tax of USD 30.3 million driven by good non-technical results. The Club reported an underwriting loss for the year with a combined ratio of 103.9% (2024: 94.5%) (as calculated by AM Best), reflecting higher pool claims activity compared to the previous two years. AM Best expects the Club's prospective technical performance to remain supportive of the adequate assessment, despite being subject to volatility due to potential large claims exposure. The Club's non-technical performance is also subject to volatility as all unrealised gains and losses are accounted for through profit and loss.
West is a specialist marine insurer, focused on mutual P&I business, with some diversification into other marine lines. West's gross written premium increased by 7% to USD 354 million for the year-ending February 2025, primarily reflecting organic growth and rate increases.
This press release relates to Credit Ratings that have been published on AM 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 AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings Assessments
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