Converge RE II, a Puerto Rico-domiciled Class 5 Life and Annuity reinsurer, has been assigned an insurance financial strength rating of A- by Kroll Bond Rating Agency (KBRA), having launched in August of 2017.
Owned by David Lichtenstein, Chairman and Chief Executive Officer (CEO) of the Lightstone Group, a commercial real estate investment enterprise he founded in 1988, this rating of Converge RE will help the company further develop its’ business relationships with cedents.
Lichtenstein has pledged his continued support of Converge RE’s growth strategy beyond its current capitalisation with an additional capital commitment letter.
KBRA says the ratings reflect its’ expectation that sufficient capital will be infused into Converge RE as transactions are consummated.
Securing this rating will assist the company’s continued development and also help them further develop their business relationships with cedents.
Converge RE’s business plan includes the targeting of middle market U.S life companies with investment guidelines compatible with its investment strategy.
KBRA says a rating upgrade in the near to medium term is not expected. For the longer term, successful execution of converge RE’s business plan, continued favourable capital trends, maintenance of sound financial flexibility, sustained growth in earnings, and the absence of any liquidity events could result in positive momentum.