Steamship Mutual Group

The negative outlook indicates that we could lower the ratings by one notch within the next two years if Steamship cannot remedy its underwriting performance so that it breaks even again, or if its capital were to fall below our 'AAA' benchmark. We could lower the rating by one notch if Steamship did not report combined ratios of 100% or below by February 2024, or if we predicted that Steamship's capital adequacy was likely to fall below the 'AAA' benchmark in our risk-based capital model. (Lower combined ratios indicate better profitability. A combined ratio of greater than 100% signifies an underwriting loss.) We could revise the outlook to stable if Steamship's underwriting performance returned to at least breakeven levels over

...Steamship will maintain its strong reputation and strong competitive position in the P&I sector, in our opinion. Steamship's disciplined approach to underwriting and management's continuing focus on servicing customer needs will allow Steamship to maintain its strong retention levels and will enable it to maintain an underwriting balance over the long term, despite the impact of COVID-19 and the higher pool claims witnessed over the past few years, which drove Steamship's combined ratio to 127.8% in fiscal year ending February 2021 (fiscal 2021), compared with 98.6% at February 2020, in our opinion. Steamship's capital position is expected to remain extremely strong. Despite the losses recorded in fiscal 2021, Steamship has generated around $140 million in surpluses over the past five years, which has allowed the club to accumulate a significant excess of capital over our '###' level according to our risk-based model, albeit with a slightly reduced excess than last year. Steamship's Solvency...

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