AM Best has assigned Credit Ratings to Prismic Life Reinsurance, Ltd. (Prismic Life Re) and Prismic Life Reinsurance International, Ltd. (PL Re International), both domiciled in Bermuda, with a stable outlook.
The ratings agency assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) to Prismic Life Re. PL Re International was also assigned an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent).
AM Best assesses both Prismic Life Re and PL Re International’s balance sheet strength as very strong, with an adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM).
Both entities are recently formed Bermuda-based reinsurance companies, with Prismic Life Re primarily placing U.S.-based business and PL Re International primarily placing non-U.S. business.
AM Best noted that the Prismic companies have demonstrated their ability to raise capital from investors to support future business plans, and that management has successfully executed on those plans.
Through several funding rounds, both Prismic entities have secured more than adequate levels of capital and elevated risk-adjusted capitalisation.
Each additional treaty is expected to come with specific reserve requirements, which AM Best will monitor through its credit rating practices. Prismic’s management has also furnished the business plans needed for rating newly formed companies, which are used as the basis of the newly assigned ratings.
The ratings also reflect the companies’ financial flexibility and their ability to acquire new business through strong relationships, including with Prudential and Warburg Pincus. AM Best noted that the acquired business carries a certain level of assumed product risk for the Prismic Life Re and PL Re International management teams.
