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Best’s News & Research Service - May 27, 2016 11:46 AM (EDT)

A.M. Best Affirms Ratings of Assured Guaranty Re Overseas Ltd.

  • May 27, 2016 11:46 AM (EDT)
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Oldwick //BestWire// - A.M. Best has affirmed the financial strength rating of A+ (Superior) and the issuer credit rating of “aa” of Assured Guaranty Re Overseas Ltd. (AGRO) (Bermuda). The outlook for each rating is stable.

The ratings reflect AGRO’s strong risk-adjusted capitalization, experienced management with a proven track record, prudent investment strategy, payment obligation support from its indirect parent and disciplined approach to expanding into the aircraft residual value insurance and life financial reinsurance market segments. The ratings also recognize the company’s strong enterprise risk management framework and infrastructure. The ratings of AGRO also reflect its affiliation with Assured Guaranty Re Ltd. (AG Re), a wholly owned subsidiary of Assured Guaranty Ltd. (AGL). Affiliates of AGL also provide operational, underwriting and risk management support to AGRO.

A.M. Best expects AGRO’s risk capitalization to be maintained at an excellent level, supported by low projected underwriting leverage, guarantee of the company’s payment obligations by its indirect parent, AG Re, and the benefits and support of a broader successful insurance franchise.

Partially offsetting rating factors include a reduction in net income due to a significant decline in net earned premium in 2015 as compared with 2014. In addition, the typical challenges posed by expanding into new targeted lines of business could have a negative impact on the execution of the company’s business plan.

A rating trigger that could result in a positive rating action is AGRO meeting or exceeding its business plan. Negative rating action could occur if AGRO fails to execute its business plan over the long term or if it experiences a dramatic decline in its risk-adjusted capitalization, unfavorable operating results or instability at the parent level.

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source.



Reinsurance Reinsurers Press Release Insurance Bermuda Best's Credit Rating Action


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