Market Overview

A.M. Best Places Ratings of Tapiola General Mutual Insurance Company Under Review With Developing Implications


A.M. Best Europe – Rating Services Limited has placed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Tapiola General Mutual Insurance Company (Tapiola General) under review with developing implications following the company's announcement on 7 February 2012 to merge with Local Insurance Mutual Insurance Company (Local Insurance). Subject to the approval of the Finnish Competition Authority and the Finnish Financial Supervisory Authority, as well as obtaining approval at the respective Annual General Meetings, the merger process is expected to take approximately two years to complete.

Local Insurance is part of Local Insurance Group, which comprises 51 insurance associations, an insurance cooperative, as well as a regional insurance mutual company. The insurance associations are independent, mutual enterprises owned by their policyholders. The group is a market leader in farm insurance and underwrites predominantly retail lines of business within Finland. The company also acts as a reinsurer for the insurance associations, and its direct business portfolio includes mainly motor vehicle liability insurance and statutory accident insurance. It is likely that some economies of scale will be achieved as a result of the merger, whilst simultaneously increasing Tapiola General's distribution channels across Finland.

The ratings of Tapiola General will remain under review with developing implications until the full impact of the merger can be assessed. Given the planned merger, positive and negative rating actions are unlikely in the near term.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilised include: “Catastrophe Analysis in A.M. Best Ratings”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; “Risk Management and the Rating Process for Insurance Companies”; “Understanding Universal BCAR”; and “Rating European Mutual Insurers”. Best's Credit Rating Methodology can be found at

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best
Grace Panti-Amoa, +(44) 20 7397 0331
Associate Financial Analyst
Sam Dobbyn, +(44) 20 7397 0264
Associate Director
Rachelle Morrow, +(1) 908 439 2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, +(1) 908 439 2200, ext. 5644
Assistant Vice President, Public Relations

View Comments and Join the Discussion!

Partner Center