AM Best has assigned a Preliminary Credit Assessment (PCA) to Beazley Bermuda Insurance Limited (BBIL), the London-headquartered specialist insurer and reinsurer’s new Bermuda entity.
BBIL received a Financial Strength Assessment of A pca (Excellent) and a Long-Term Issuer Credit Assessment of “a+” pca (Excellent), with a stable outlook on the PCA.
Readers may recall that alongside its nine-month results in 2025, Beazley unveiled a new Bermuda platform to support growth from 2026.
At the time, Beazley announced it would invest $500 million to establish the new Bermuda setup, which included the formation of a UK holding company, Beazley Bermuda Holdings Limited, as well as two new Bermuda entities: Beazley Bermuda Insurance Limited and Beazley Bermuda Services Ltd.
The firm later confirmed that it foresees a “strong growth trajectory” for its new Bermuda platform, with approximately $400 million in premiums expected by 2030.
According to AM Best, the PCA reflects BBIL’s balance sheet strength, which the rating agency assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
“The PCA also factors in lift from BBIL’s ultimate parent, Beazley plc, reflecting the strategic importance of BBIL to the group,” AM Best added.
The rating agency continued, “BBIL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to be at the strongest level, as well as the understanding that BBIL will follow Beazley’s prudent reserving and investment strategy.”
As per the rating agency, BBIL is expected to achieve an adequate operating performance assessment over the medium term, supported by profitable, albeit potentially somewhat volatile, underwriting results despite the softening pricing environment.
Investment income is expected to contribute meaningfully to BBIL’s overall earnings, particularly in the initial years of business.
AM Best concluded, “Beazley plc has a well-established profile, with a strong franchise as an internationally recognised insurance group operating principally at Lloyd’s.
“BBIL will enable the group to widen its footprint and gain access to Bermuda’s reinsurance market. The company’s portfolio is expected to complement that of Beazley plc and provide additional diversification over the long term.”
