Global rating agency AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICR) and also affirmed the Financial Strength Ratings of A (Excellent) and the Long-Term ICRs of “a” (Excellent) of specialist re/insurer Beazley’s subsidiaries.
The subsidiaries include Beazley Insurance Designated Activity Company (Ireland), Beazley Insurance Company, Inc (Farmington, CT), and Beazley America Insurance Company, Inc. (Farmington, CT). The outlook of the FSRs for the subsidiaries is stable.
Simultaneously, AM Best has affirmed the FSRs of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of Lloyd’s Syndicate 2623, Lloyd’s Syndicate 623, Lloyd’s Syndicate 3623, and Lloyd’s Syndicate 3622. The outlook of these credit ratings is also stable.
The rating agency explains that the ratings of BIDAC, BICI and Beazley America reflect the consolidated balance sheet strength of the parent, which has been assessed as very strong. The group’s strong operating performance, neutral business profile and appropriate enterprise risk management are key factors that have contributed to the revision.
AM Best’s expectation is that Beazley will maintain its risk-adjusted capitalisation comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This will be supported by prudent capital management and effective cross-cycle underwriting management.
Further, a rating upgrade is likely if the group maintains robust capital buffers and strong underwriting performance throughout the currently hard market cycle, says AM Best.
“BIDAC, BICI and Beazley America are strategically important to and integrated with Beazley,” notes AM Best.
