AM BEST ASSIGNS RATINGS TO STRONGHOLD INSURANCE IN PHILIPPINES

KUALA LUMPUR, March 18 (Bernama) -- Global credit rating agency, AM Best has assigned a financial strength rating of B (Fair), a long-term issuer credit rating of “bb” (Fair) and a Philippines National Scale Rating of a.PH (Excellent) to Stronghold Insurance Company Inc (Stronghold).

In a statement, AM Best said the outlook assigned to these credit ratings (ratings) is stable.

The ratings reflect Stronghold’s strong balance sheet strength, adequate operating performance, limited business profile and marginal enterprise risk management.

The company’s risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio, is expected to remain at least strong over the medium term. Stronghold’s investment portfolio is low-to-moderate risk, with the majority allocated to cash, deposits, and Philippine government bonds, supported by a reinsurance programme of generally good credit quality.

Operating performance remains adequate, with a five-year average return on equity of 5.7 per cent (fiscal years 2020 to 2024). The company has shown marginal improvement in combined ratios, supported by steady business growth and generally benign loss experience.

In addition, investment income, primarily from interest and rental returns, remains stable and contributes positively to overall earnings, with 2025 operating results staying in positive territory due to consistent underwriting and investment performance.

Stronghold is among the top 10 non-life insurers in the Philippines, with approximately four per cent market share. Key business lines include fire, surety and motor insurance, with premium growth driven in part by large fire policies.

AM Best notes that certain risk exposures, particularly to natural catastrophes such as typhoons and floods, exceed current risk management capabilities, though improvements are expected over time.

-- BERNAMA