ALDWICK, New Jersey—(BUSINESS WIRE)–
AM Best has affirmed the Financial Stability Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of ‘a’ (Excellent) by EyeMed Insurance Company (EIC) (Phoenix, Arizona). The outlook for these credit ratings (ratings) is stable. EIC, along with EyeMed Vision Care, LLCare North America-based entities of EssilorLuxottica, the ultimate parent.
The ratings reflect EIC’s strong balance sheet, which AM Best rates as very strong, as well as its adequate operating results, neutral business profile and appropriate enterprise risk management. The assessments take into account the strategic importance of EIC to EssilorLuxottica as well as the overall operational support provided by the parent company.
The ratings also reflect EIC’s very high risk-adjusted capitalization as measured by Best’s capital adequacy ratio (BCAR). The company’s balance sheet strength rating is enhanced by a highly liquid investment portfolio and solid liquidity measures. The ratings also take into account the company’s reliance on reinsurance programs and dividend payout history.
EIC reported continued favorable operating results in 2021 and the second part of 2022. Based on its five-year average return on equity, EIC continues to outperform its peers. Additionally, the company continues to experience strong premium growth, reflecting favorable brand recognition and affiliation EyeMed Vision Care, LLC, as well as its ultimate parent. The valuations also reflect the organization’s established market presence and solid overall market share in the vision care space. EIC is strategically important to EssilorLuxottica’s vertically integrated business model, as its main insurance operating entity. The ratings also receive an upgrade from EIC’s ultimate parent company EssilorLuxottica, a global market leader with a broad and well-established presence and overall favorable creditworthiness that supports insurance operations.
This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of credit score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquarters in United Statesthe company develops business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.
Copyright © 2023 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Jennifer Asamoah
Senior Financial Analyst
+1 908 439 2200, ext. 5203
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Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
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Joseph ZazeraMBA
Director
+1 908 439 2200, ext. 5797
[email protected]
Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
[email protected]
Source: AM Best