U.K. War Risks Club Awarded Excellent Financial Rating
The United Kingdom Mutual War Risks Association Limited (U.K. War Risks Club) is pleased to announce that it has been awarded an A- "excellent" financial strength rating with a "stable" outlook from AM Best, the insurance rating and information source.
AM Best’s rating reflects the U.K. War Risks Club’s “excellent risk adjusted capitalisation,” “good operating performance” and “good business profile.” Although the rating agency expects performance to remain volatile, reflecting the inherent nature of war risks insurance, the U.K. War Risks Club is “sufficiently strong to withstand future earnings volatility.”
Despite the volatility of this sector, the U.K. War Risks Club has reported a post-tax surplus in four of the last five years. It has combined an average annual return of premium to members of 11% with an increase in free reserves to $31.3 million (USD) at financial year-end in February 2013.