Re/insurer, Ascot Group and its subsidiaries have had their credit ratings upgraded by international financial services ratings agency, A.M. Best.
Specifically, the ratings agency has upgraded the Financial Strength Rating to positive from stable and the Long-Term Issuer Credit Ratings (Long-Term ICR) is to stay as “A” (excellent) for Ascot Bermuda Limited, Ascot Insurance Company and Ascot Specialty Insurance Company.
The revision of the Long-Term ICR outlooks to positive reflects AM Best’s expectation that Ascot’s underwriting portfolio will continue to diversify as the group develops its U.S. and Bermudian operations, which could impact the business profile assessment positively.
Additionally, the ratings benefit from rating enhancement, in the form of a lift, from Ascot’s ultimate parent, Canada Pension Plan Investment Board (CPPIB).
CPPIB is considered to be of superior financial strength, and AM Best expects it to support Ascot’s strategy.
Ascot Bermuda is the group’s internal reinsurer and is considered a platform for growth in Bermuda’s reinsurance market. AIC and ASIC (collectively referred to as Ascot U.S.) are similarly considered to be sources for diversification and growth within the U.S. admitted lines market, and are supported by a net worth maintenance agreement with Ascot.
AM Best expects Ascot’s overall profitability to remain stable in the medium term, subject to sustainable growth from the group’s new undertakings in the United States and Bermuda.
It also notes that Ascot Group’s operating performance has been supported by both very strong underwriting returns and solid investment results.
