The shareholder and the Board of Directors of both Kelvin Re Limited and Humboldt Re Ltd., two Guernsey domiciled rated reinsurance vehicles managed and backed by capital from the Credit Suisse Insurance Linked Strategies Ltd. team, have decided to cease underwriting new business.
Licensed in Guernsey since 2015, the ultimate shareholder and the Board of Humboldt Re has revealed that the reinsurer will stop writing new business as of January 1st, 2021.
An announcement on the reinsurer’s website states that it is currently reviewing strategic options for the ultimate shareholder to unwind its investment.
The rated reinsurer holds a security rating by A.M. Best of A- with a stable outlook. So far this year, the company has gross written premium of USD 109.3 million, with total assets of USD 1.021 billion.
“The company, which is underpinned by strong risk-adjusted capital, will continue to meet all its obligations in full compliance with the applicable laws and regulations and under the supervision of the Guernsey Financial Services Commission,” says a statement on Humboldt Re’s website.
Regarding Kelvin Re, it was decided by the shareholder and the Board at a meeting on December 2nd that, for strategic reasons it will also stop underwriting new business and pursue a controlled exit.
An announcement on the Kelvin Re website notes that the reinsurer’s business remains both solvent and strongly capitalised.
As at October 31st, 2020 the firm had net profit of USD 54.7 million and net assets of USD 991.5 million.
Back in April, rating agency A.M. Best highlighted the balance-sheet strength of each of the rated reinsurance vehicles, citing strong risk-adjusted capitalisation.
The reason for both rated reinsurers ceasing to write new business remains unclear, and it will be interesting to see the rationale behind the decisions of the shareholder and the Board.
