Delta gains “Excellent” performance assessment from AM Best

AM Best’s performance assessments fall into five categories: Exceptional, Excellent, Strong, Fair and Weak. The assessment looks at five areas of a company’s operations, namely underwriting capabilities, governance and internal controls, financial condition, organisational talent, and depth and breadth of relationships.

Delta Underwriting was established in 2017 and is the first financial lines Lloyd’s coverholder in Singapore. It currently does business in more than ten countries in the Asia-Pacific region, with Delta Insurance Group headquartered in New Zealand.

Delta group chief operating officer Kent Chaplin said the assessment process has been “as robust and rigorous as you can get.  But the outcome – having received a PA 2 Excellent assessment at our first go – will be a game-changer for us in New Zealand and our international markets. It’s a mark not just of financial strength but also professionalism, governance, the quality of our people and the relationships we’ve formed.”

The liability insurance industry in Asia-Pacific is expected to grow due to rising demand for insurance covering the commercial sector, such as workers’ compensation, professional/management liability insurance and cyber. A report by GlobalData said the Asia-Pacific liability insurance market is projected to grow from US$28.8 billion in 2019 to US$33.4 billion in 2023, in terms of written premiums.

“This has been a hugely valuable process for us as a growing organisation and strongly validates the vision we have and the approach we have taken to developing a somewhat unique insurance business across the Asia-Pacific region,” said Delta Underwriting Singapore managing director Eugene Cheong. “AM Best is the first and only such assessment service so far to review companies like ours – and we are one of the first to be rated. It’s gratifying to be rated as Excellent on our first assessment as a relatively young company.”

Chaplin said Delta was also given a “stable” forward-looking assessment by AM Best. In the ratings agency’s view, Delta is expected to “maintain its current position while it leverages its industry relationships and excellent staff to proceed to a more mature stage of operations that includes advancement of its gross premiums, geographic footprint and lines of business.”