AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of United Kingdom Mutual War Risks Association Limited (UK War Risks or the Association) (United Kingdom). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect UK War Risks’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

UK War Risks’ balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital consumption is driven largely by investment risk, as UK War Risks cedes almost all of its underwriting exposure to third-party reinsurers resulting in relatively low net retentions. Given the ongoing conflict in the Middle East, the Association is proactively monitoring its potential exposure and remains well-capitalised and supported by a diverse reinsurance panel of excellent credit quality. The balance sheet strength assessment also considers the Association’s small capital base and material dependence on reinsurance to offer large limits to its members.

Given the Association’s low net retention, income generated from its diversified investment portfolio has been the main driver of historical profitability. However, underwriting performance for the financial year ending February 2027 is expected to deteriorate following several reported claims arising from the Middle East conflict. Prospective operating performance remains subject to volatility given the moderate exposure to riskier asset classes such as equities and the ongoing geopolitical environment.

UK War Risks has an established profile as a specialist underwriter of marine war risk insurance, covering a range of commercial vessels worldwide. However, the Association is of limited size, vulnerable to competition, and has a concentrated membership base, which it is looking to reduce via a renewed focus on expansion and diversification of members.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does 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 © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260521354460/en/

Patrick McCrystal
Financial Analyst
+44 20 3808 2988
patrick.mccrystal@ambest.com

Kanika Thukral
Associate Director, Analytics
+44 20 7397 0327
kanika.thukral@ambest.com

William Hughes
Financial Analyst
+44 20 7397 4397
william.hughes@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

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