Global credit ratings agency AM Best has revised the outlook to stable from positive for the Long-Term Issuer Credit Ratings (Long-Term ICR), and also affirmed the Financial Strength Ratings (FSR) of A (Excellent) and the Long-Term ICR’s of “a+” (Excellent) of specialist re/insurer Beazley’s subsidiaries.
The subsidiaries include: 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 the FSRs of the subsidiaries is stable.
The agency explained that the ratings of BIDAC, BICI, Beazley America and BESI reflect the consolidated balance sheet strength of the parent (Beazley), 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 also contributed towards the revision.
Moreover, AM Best’s expectation is that Beazley’s risk-adjusted capitalisation will remain comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
It’s important to highlight, that throughout recent years, the group has maintained robust capital buffers and strong technical performance whilst growing its insurance portfolio, which has been supported by prudent risk selection and effective cross-cycle underwriting management.
AM Best noted that BIDAC, BICI, Beazley America and BESI are “strategically important to and integrated with Beazley.”
Lastly, the agency stated that Beazley’s balance sheet strength is underpinned by its “strongest level of risk-adjusted capitalisation, as measured by BCAR, as well as the group’s prudent reserving, good financial flexibility and strong liquidity.”
