Steamship Mutual Group

The stable outlook reflects our expectation that Steamship's capital adequacy will remain in the 'AAA' category over the next two years. We also expect the club's underwriting and earnings performance to slowly improve over the next two years. We might lower the rating if, contrary to our expectations over the next two years: Significant underwriting losses resulted in Steamship being unable to sustain capital comfortably at the 'AAA' level in our risk-based capital model. We do not anticipate raising the rating over the next two years. An upgrade would likely depend on Steamship expanding its product diversity without compromising operating performance. Global GDP growth to slow. P&I rates to improve, but at a measured rate. IG's pool structure will not

...Steamship will maintain a strong competitive position in the P&I sector. We expect Steamship will maintain its strong reputation in the P&I (protection and indemnity) sector for both its service excellence and operating performance. Its disciplined approach to underwriting and management's continuing focus on servicing customer needs will allow the club to maintain its strong retention levels while continuing to return combined ratios close to 100%. Steamship's capital position is likely to remain extremely strong. Steamship has generated over $187 million in surpluses in the past five years, which has allowed the club to build a significant excess of capital over our '###' level according to our risk-based model. Despite challenging conditions in the sector, we believe the club will comfortably sustain a surplus over our '###' benchmark over the next two years. Like the majority of its peers, Steamship remains largely undiversified outside of its core P&I product line.Steamship remains...

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