Best’s News & Research Service - July 20, 2017 10:07 AM (EDT)
A.M. Best Affirms Credit Ratings of Fidelis Insurance Holdings Limited and Its Subsidiaries
- July 20, 2017 10:07 AM (EDT)
Oldwick //BestWire// - A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Fidelis Insurance Bermuda Limited (Fidelis) (Bermuda) and Fidelis Underwriting Limited (Fidelis UK) (United Kingdom). A.M. Best also has affirmed the Long-Term ICR of “bbb-” of Fidelis Insurance Holdings Limited (Bermuda), the ultimate holding company. Concurrently, A.M. Best has affirmed the Long-Term Issue Credit Rating of “bb” on its $304 million ($287.15 million currently outstanding) 9% cumulative preference shares, due 2050. The outlook of these Credit Ratings (rating) is stable.
The rating affirmations of Fidelis and Fidelis UK are based on strong risk-adjusted capitalization, an experienced management team with a proven track record and acceptance in the marketplace. Additionally, A.M. Best recognizes Fidelis’ ability to generate underwriting profit in its first full year of operation. Furthermore, Fidelis UK’s ratings recognize the support it receives from its affiliate, Fidelis, and from Fidelis Insurance Holdings Limited, the ultimate parent.
Partially offsetting these positive rating factors are the start-up nature of the company, the volatility of operating results caused by business plan changes, greater investment risk associated with its alternative investment strategy, as well as the continued competition and capacity in the reinsurance marketplace, which contribute to the difficulty of business plan execution. Mitigating these concerns are the prudent underwriting leverage contemplated in Fidelis’ business plan and the diversified, multi-manager investment strategy. Fidelis’ assets are currently managed by 14 investment advisers who are registered with the Securities and Exchange Commission or the Financial Conduct Authority, with assistance from MAN Group FRM and Albourne Partners Ltd.
This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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