Best’s News & Research Service - February 20, 2020 02:23 PM (EST)
AM Best Upgrades Credit Ratings of Somerset Reinsurance Ltd.
- February 20, 2020 02:23 PM (EST)
Oldwick //BestWire// - AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb+” of Somerset Reinsurance Ltd. (Somerset Re) (headquartered in Pembroke, Bermuda). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Somerset Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Somerset Re is a life and annuity reinsurer registered in Bermuda. The company is focused on providing reinsurance solutions for asset-intensive life insurance and annuity business, including programs for new business flow and management of legacy blocks of life insurance and annuities.
The rating upgrades reflect the company’s ability to execute on its business plan, including positive core earnings trends in profitability and premium growth.
The balance sheet strength is assessed on Somerset Re’s five-year business plan with a very high level of capital injected into the business at startup by the parent company. The shareholders initially provided $400 million of capital and will potentially infuse more as necessary. AM Best anticipates the current capitalization level to support new business growth over the intermediate term without the need to access additional funding.
The company is backed by a very experienced reinsurance management team with deep ties to the industry. The company’s ERM program is well-developed and currently appropriate for its business operations.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.