Ratings agency A.M. Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Nectaris Re Ltd, which is backed by London-based specialist ILS and reinsurance related investments manager, Leadenhall Capital Partners LLP.
Domiciled in Bermuda, Nectaris Re is the main operating subsidiary of Nectaris Holdings Ltd.
The ratings, which have been assigned a stable outlook, reflect Nectaris Re’s strong balance sheet strength, and also its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Nectaris Re’s business plan is to retrocede all of its business to Horseshoe Re II Limited segregated accounts company with cells that are supported by ILS funds managed by Leadenhall, a subsidiary of Mitsui Sumitomo Insurance Company.
As highlighted by AM Best, the business written through MS Amlin is expected to account for roughly 90% of total limits ceded to Nectaris Re, and will be 100% retroceded to Horseshoe Re II on a fully collateralized basis.
The ratings agency says that it expects Nectaris Re’s risk-adjusted capital to remain at the strongest level over the near term. Additionally, its liquidity and quality of assets provide ample support of its balance sheet strength assessment.
Partially offsetting these rating factors is Nectaris Re’s relatively high dependency on third-party retrocession, says AM Best.
