AM Best Comments on Credit Ratings of Evergreen Insurance Company Limited Following Suez Canal Ship Grounding

AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Evergreen Insurance Company Limited (EICL) (Bermuda), remain unchanged following the grounding of the container ship, Ever Given, in the Suez Canal on 23 March 2021. The outlook of these Credit Ratings (ratings) is stable.

Ever Given is owned by the Japanese firm Shoei Kisen Kaisha, Ltd.; it is a chartered vessel currently leased by Evergreen Marine Corp. (Taiwan) Limited (EMC) under a time charter agreement. According to public disclosures by EMC, potential expenses arising from the salvage operation, cost of repair to hull and machinery, as well as third-party liability are borne by the ship owner. EICL does not have direct underwriting exposure to the aforementioned insurance coverages. The potential claims arising from this incident are expected to be within EICL’s risk tolerance. As such, AM Best believes the impact to EICL’s credit fundamentals is limited. AM Best will continue to monitor the development of the incident, as well as the financial impact to EICL.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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