OLDWICK: AM Best, a global credit rating agency, news publisher and data provider specializing in the insurance industry, has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” of EyeMed Insurance Company (EIC) (Phoenix, AZ).
The outlook is stable.
EIC, along with EyeMed Vision Care LLC, are subsidiaries of Luxottica Group S.p.A., and these companies are the North America-based entities of EssilorLuxottica S.A., the ultimate parent.
The ratings reflect EIC’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The ratings consider EIC’s strategic importance to EssilorLuxottica S.A., as well as the comprehensive operational support provided by its parent company.
EIC’s balance sheet strength is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), which is enhanced by a highly liquid investment portfolio and solid liquidity measures.
The ratings also take into consideration the dependence on reinsurance programs and the history of dividend payments.
The company reported consistently favorable operating performance up to 2018 as a captive insurance company. Since converting to insurance company in 2018, EIC has reported good operating performance, evidenced by premium growth and solid operating return measures.
During the most recent nine-month period in 2019, EyeMed Insurance Company (EIC) reported strong premium growth, as well as margin expansion, a trend that is expected to continue in the near term.
The ratings also reflect the organization’s established market presence and solid overall market share in the vision care space.