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Accelerant’s new Malta insurance subsidiary gets rated

27th March 2020 - Author: Luke Gallin

Accelerant Insurance Limited (Accelerant EU) (Malta), a wholly owned subsidiary of Accelerant Intermediate Holdings (Accelerant) (Cayman Islands), has been assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” by A.M. Best.

am-best-logoAccelerant is the non-operating holding company of the Accelerant group, and A.M. Best notes that these ratings reflect Accelerant EU’s strategic importance to both the Accelerant group and Accelerant’s consolidated balance sheet strength. The outlook assigned to these Credit Ratings is stable.

Accelerant EU is the group’s Malta domiciled insurance subsidiary, servicing managing general agents (MGAs) in the UK, the European Union and Norway. UK business is to be written by a third-country branch of the Maltese carrier. The ratings agency also notes that in the future, Accelerant has plans to establish a Bermuda domiciled internal reinsurer to assist in centralising capital within the group.

Accelerant has been in business since January 2019 and provides insurance capacity to MGAs, as well as underwriting, claims handling and analytical support. The group is backed by a €100 million capital commitment from Altamont Capital Partners, and launched its Maltese-based carrier as a vehicle designed to retain insurance risk within the group.

“AM Best expects Accelerant to maintain the strongest level of consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), over the five-year period from 2020 to 2024, taking into account AM Best’s additional capital requirements for new company formations. An offsetting factor in the balance sheet strength assessment is the high level of reliance on reinsurers, which is a result of the group’s strategy to retain approximately 10% to 20% of business written,” explains the ratings agency.

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