CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - SEPTEMBER 15, 2016 09:17 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Rembrandt Insurance Company, Ltd. (Rembrandt) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.
Rembrandt is a captive (re)insurer of Vitol Holding B.V. (Vitol), a holding company of a group engaged principally in trading petroleum-related products and commodities.
The ratings of Rembrandt reflect the company’s track record of very strong financial performance and excellent risk-adjusted capitalisation, as well as its importance to the Vitol group as a risk management tool.
Rembrandt consistently generates strong operating results, as demonstrated by an average five-year adjusted return on capital of 15%. Its strong financial performance is driven by excellent underwriting results, with an average five-year combined ratio of 17%, and is supported by stable, albeit modest, investment income.
The company’s risk-adjusted capitalisation remains excellent, supported by good internal capital generation, low net underwriting leverage and an outward reinsurance programme that is placed with a panel of financially strong reinsurers. A marginally offsetting factor is the captive’s concentrated asset base, with a loan facility provided by Rembrandt to the Vitol group, representing 75% of total assets at year-end 2015. The investment risk associated with this loan is somewhat mitigated by terms that allow it to be redeemed at short notice.
A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.