AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) to newly formed Beazley Excess and Surplus Insurance, Inc. (BESI), a wholly owned subsidiary of Beazley Holdings, Inc., a non-operating holding company of Beazley.
The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is positive.
AM Best noted that the Credit Ratings reflect Beazley’s consolidated balance sheet strength, which the rating agency assesses as very strong, as well as its “strong operating performance, neutral business profile and appropriate enterprise risk management.”
AM Best continued, “The ratings of BESI reflect the entity’s role and strategic importance to Beazley as an excess and surplus writer in the United States.
“The company benefits from full integration into the group’s operations and management, as well as explicit and implicit support given to BESI, including capital commitments and reinsurance.”
BESI received its Certificate of Incorporation from the state of Connecticut in 2023.
AM Best said that the establishment of BESI will give Beazley the opportunity “to offer its U.S. clients domestic surplus lines paper and further develop its North American platform in line with its current strategy.”
The rating agency anticipates that initially, BESI will offer cyber and property products and will add a full suite of specialty, marine, contingency and political risks in the near future. AM Best added that BESI will use the same operational capabilities of the existing U.S. Beazley entities.
