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FOEIS\u2019 Financial Strength Rating has been upgraded to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to \u201cbbb\u201d (Good) from \u201cbbb-\u201d (Good).<\/p>\nCredit rating agency AM Best has upgraded the credit ratings of FAIR Oil & Energy Insurance Syndicate (FOEIS), and revised the outlook to stable from positive.<\/p>\n
FOEIS\u2019 Financial Strength Rating has been upgraded to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to \u201cbbb\u201d (Good) from \u201cbbb-\u201d (Good).<\/p>\n
AM Best upgraded FOEIS ratings based on its strong balance sheet, operating performance, and enterprise risk management. The Syndicate\u2019s business profile is considered limited.<\/p>\n
\u201cThe rating upgrades reflect the steady enhancements over recent years made by the Syndicate to improve its balance sheet strength fundamentals, notably through increased risk-adjusted capitalisation, as measured by Best\u2019s Capital Adequacy Ratio (BCAR),\u201d the rating agency stated.<\/p>\n
It continued: \u201cThese were achieved in part by robust capital generation, in addition to the de-risking and diversification of its investment portfolio and retrocession panel. In addition, the Syndicate has taken steps to strengthen the permanence of its capital, achieved through the annual retention of surplus and regular transfer of retained earnings to its general reserve which may not be distributed to members.\u201d<\/p>\n
The FAIR Oil & Energy Insurance Syndicate was created by the Federation of Afro-Asian Insurers & Reinsurers (FAIR) to serve FAIR Members in the Oil & Energy and related business sector.<\/p>\n FOEIS\u2019 members are drawn from participants of FAIR, who subscribe to the Syndicate\u2019s units of capacity. As at year-end 2024, the Syndicate consisted of 20 members from across the Africa, Middle East and Asia regions.<\/p>\n The Syndicate, which functions similarly to a traditional reinsurer, offers reinsurance and underwriting services to its Members and third-party cedants, with a primary focus on the Afro-Asian markets.<\/p>\n Although its legal structure is unique, the Syndicate provides capacity and expertise to its members, operating much like a conventional reinsurer.<\/p>\n The Syndicate has been consistently profitable over 25 years, with the exception of a 2019 operating loss caused by large underwriting losses and a sanctions-related debt provision. Performance has since recovered, with net loss ratios below 50%.<\/p>\n Preliminary 2024 results show continued positive earnings, with a net surplus of USD 4.3 million, equivalent to a return on equity of 10%.<\/p>\n M Best highlighted that, despite its limited size, the Syndicate\u2019s niche business profile has been beneficial as it has helped it build a good reputation within the energy insurance market.<\/p>\n \u201cWhilst FOEIS is concentrated by line of business, the Syndicate benefits from diversification through the geographical spread of its portfolio. FOEIS\u2019 stable member base provides it with good access to energy risks across the Afro-Asian territories, supplemented by business written on the open market across the region,\u201d AM Best explained.<\/p>\n The post AM Best upgrades FAIR Oil & Energy Insurance Syndicate credit ratings<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Credit rating agency AM Best has upgraded the credit ratings of FAIR Oil & Energy Insurance Syndicate (FOEIS), and revised the outlook to stable from positive. FOEIS\u2019 Financial Strength Rating has been upgraded to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to \u201cbbb\u201d (Good) from \u201cbbb-\u201d (Good). AM Best upgraded FOEIS…<\/p>\n","protected":false},"author":1,"featured_media":1108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-1106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reinsurance"],"_links":{"self":[{"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/posts\/1106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/comments?post=1106"}],"version-history":[{"count":3,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/posts\/1106\/revisions"}],"predecessor-version":[{"id":1110,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/posts\/1106\/revisions\/1110"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/media\/1108"}],"wp:attachment":[{"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/media?parent=1106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/categories?post=1106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/esportslegendary.com\/index.php\/wp-json\/wp\/v2\/tags?post=1106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"https:\/\/esportslegendary.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
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