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Business Wire
3 days ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of Lloyd's Syndicate 2001
LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Ratings of A+ (Superior) and the Long-Term Issuer Credit Ratings of 'aa-' (Superior) of Lloyd's Syndicate 2001 (Syndicate 2001) (United Kingdom), which is managed by MS Amlin Underwriting Limited (MS Amlin). The outlook of these Credit Ratings (ratings) is stable. The Lloyd's market rating is the floor for all syndicate ratings, reflecting Lloyd's chain of security, and, in particular, the role of the Central Fund, which partially mutualises capital at the market level. The ratings of Syndicate 2001 reflect the balance sheet strength of the Lloyd's market, which AM Best assesses as very strong, as well as the market's strong operating performance, very favourable business profile and appropriate enterprise risk management. Syndicate 2001's operating performance has improved in recent years, demonstrated by the USD 212 million and USD 257 million profit recorded in 2024 and 2023, respectively. The recovery has been driven by improved underwriting profitability, with the syndicate achieving combined ratios in the mid-to-high 80% range in 2024 and 2023, which followed multiple years of underwriting losses. The recent improvement contributed to the reduction of the syndicate's five-year (2020-2024) weighted average combined ratio to 97.3%. Despite the recovery in total earnings and underwriting performance, the syndicate's recent operating performance remains below that of the overall Lloyd's market. 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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
01-08-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Beazley's Lloyd's Syndicates and Beazley plc Subsidiaries
LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Ratings (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'aa-' (Superior) of Lloyd's Syndicate 2623, Lloyd's Syndicate 623, Lloyd's Syndicate 3623 and Lloyd's Syndicate 3622 (the syndicates) (United Kingdom). Concurrently, AM Best has affirmed the FSRs of A (Excellent) and the Long-Term ICRs of 'a+' (Excellent) of Beazley Insurance Designated Activity Company (BIDAC) (Ireland), Beazley Insurance Company, Inc. (BICI) (Farmington, CT), Beazley America Insurance Company, Inc. (Beazley America) (Farmington, CT), and Beazley Excess and Surplus Insurance, Inc. (BESI) (Farmington, CT). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect the syndicates' balance sheet strength which AM Best assesses as very strong, as well as a strong operating performance, very favorable business profile and appropriate enterprise risk management (ERM). The ratings of BIDAC, BICI, BESI and Beazley America also reflect the consolidated balance sheet strength of Beazley plc (Beazley) [LSE: BEZ], which AM Best assesses as very strong, as well as the group's strong operating performance, neutral business profile and appropriate ERM. BIDAC, BICI, Beazley America and BESI are strategically important to and integrated with Beazley. These four companies are owned ultimately by Beazley, which is the non-operating holding company and consolidating rating unit for the group. BIDAC reinsures 65% of the profit or loss of the distribution of Syndicates 2623 and 3623 to Beazley's Lloyd's corporate member (after a deductible) and also provides an internal reinsurance quota share to BESI. BICI and Beazley America are Beazley's admitted carriers in the United States. Beazley's balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), as well as the group's prudent reserving, good financial flexibility and strong liquidity. Beazley's balance sheet strength is supported by its conservative investment strategy, although the group maintains a moderate allocation to higher-yield instruments. Beazley has a record of strong operating performance supported by excellent underwriting results and solid investment income. In 2024, Beazley generated a net-net combined ratio of 82.8% (as calculated by AM Best), moderately up compared to the 79.5% achieved in 2023, which benefitted from a relatively low catastrophe loss incidence compared to 2024. Operating performance was further supported by Beazley's solid investment income, reflective of the improved global interest rate environment since 2023. Overall, the group reported net income of USD 1.1 billion in 2024. Whilst Beazley's earnings remain exposed to possible volatility relating to potential catastrophe losses in the property and cyber books of business, AM Best expects the group's overall performance to remain strong, supported by its selective underwriting strategy and generally conservative investment allocation. Beazley has a well-established profile, with a strong franchise as an internationally recognised insurance group operating principally at Lloyd's. The group's insurance written premiums reached USD 6.2 billion in 2024 and are expected to continue growing in the medium term. During the first quarter of 2025, premiums increased by 2% compared with the same prior year period, driven largely by growth in the property line of business. The syndicates are managed by Beazley Furlonge Limited, and their ratings reflect the financial strength of the Lloyd's market, which underpins the security of all syndicates. The capital of Syndicates 2623, 3623 and 3622 is provided by Beazley via its corporate member, whilst Syndicate 623 is supported by third-party capital. Syndicates 2623 and 623 have a record of good performance and maintain a resilient position in the Lloyd's market. Together, they underwrite business at Lloyd's in parallel, with their shares of combined business split according to each syndicate's portion of overall combined capacity. 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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
31-07-2025
- Business
- Business Wire
AM Best Upgrades Credit Ratings of Somerset Reinsurance Ltd. and Somerset Reinsurance Company
BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Ratings to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to 'a' (Excellent) from 'a-' (Excellent) of Somerset Reinsurance Ltd. (Somerset Re) (Hamilton, Bermuda) and Somerset Reinsurance Company (SRC) (Orlando, FL). The outlook of Somerset Re's Credit Ratings (ratings) has been revised to stable from positive. The outlook of SRC's ratings is stable. The ratings of Somerset Re reflect the company's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings of SRC reflect the company's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Somerset Re and SRC are 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 Somerset Re's ability to execute on its business plan, including positive core earnings trends in profitability and premium growth and also reflect SRC's support of the overall business plan. Somerset Re's risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level. Liquidity is assessed as more than adequate to fund anticipated short-term obligations of the current blocks of business held on the company's balance sheet. Furthermore, Somerset Re continues to enhance its position in its markets of operation as it continues to execute reinsurance agreements each year with known rated insurers in line with the company's business plan. Experience-related metrics are showing strong evidence of prudent pricing and investment management discipline. AM Best anticipates capital infusions to continue that will support further new business growth over the intermediate term without the need to access additional funding. The companies are backed by a very experienced reinsurance management team with deep ties to the industry. The ERM programs are well-developed and currently appropriate for the companies' 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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
13-06-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Solen Versicherungen AG and Noble Assurance Company
LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Ratings of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a+' (Excellent) of Solen Versicherungen AG (SVAG) (Switzerland) and Noble Assurance Company (Noble) (Texas, United States). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect SVAG's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in rating enhancement from SVAG's ultimate parent, Shell plc (Shell), reflecting the company's importance to the group as a well-entrenched risk management tool. SVAG's balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects the captive's BCAR scores to remain above the minimum required for the strongest assessment level prospectively, reflecting the insurer's strategy to maintain sufficient capital buffers to absorb a series of large losses. The balance sheet strength assessment also factors in a concentration of assets in intragroup investments, as well as the large gross and net line sizes offered by the captive relative to its capital base. SVAG has a track record of strong operating performance, underpinned by robust underwriting results, as demonstrated by a five-year (2020-2024) weighted average combined ratio of less than 25%. Prospective underwriting performance is subject to potential volatility due to the captive's exposure to high-severity low-frequency losses, given its large net line sizes relative to its premium base. In addition, the captive is exposed to elevated market risk through its management of the Shell group's foreign currency warehousing activities, which drives a level of variability in overall earnings. Nonetheless, SVAG's key performance metrics are expected to remain supportive of a strong assessment over the medium term. SVAG's business profile assessment reflects its key role in supporting Shell's overall risk management framework, as the group's principal captive. SVAG's non-life business mostly consists of offshore and onshore property and liability risks, as well as the associated business interruption covers. SVAG also writes a small book of life business, which is derived from the reinsurance of the group's pension liabilities. The ratings of Noble reflect its status as a member of the SVAG rating unit and a subsidiary of Shell. As a captive domiciled in Texas, Noble underwrites Shell's U.S. business and cedes 100% of its risks to SVAG, its sister company, through a quota share reinsurance agreement. AM 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 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 use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
