Credit rating agency AM Best has assigned new Guernsey reinsurer, Halldora Re Ltd (Halldora Re), a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent), with a stable outlook.
AM Best explained that the ratings reflect Halldora Re’s “very strong” balance sheet strength, adequate operating performance, limited business profile, and appropriate enterprise risk management.
Founded in 2025 by Arrow Global Group Limited, a pan-European asset management group, and backed by institutional investors and funds managed by the group, Halldora Re is a start-up reinsurer providing capacity to managing general agents (MGA) predominantly writing specialised risks such as after-the-event insurance, contingent risk insurance, and tax insurance.
According to the credit rating agency, Halldora Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which, as measured by Best’s Capital Adequacy Ratio (BCAR), is projected to be comfortably at the strongest level.
Additionally, the reinsurer’s balance sheet strength assessment also benefits from a net worth maintenance agreement that supports risk-adjusted capitalisation at the strongest level prospectively. Halldora Re is expected to hold good liquidity levels and have no catastrophe exposure, due to the nature of its business.
Halldora Re is expected to have an adequate operating performance supported by good underwriting performance.
Investment returns are expected to be a steady, albeit moderate, contributor to total earnings, which is consistent with the company’s moderately conservative strategy, said AM Best.
Since Halldora Re plans to grow in a highly specialised and niche segment of the specialty market, it is expected to face a relatively low level of competition.
Lastly, AM Best explained that the reinsurer’s strategy is to rely on MGAs affiliated with either Arrow Global or with funds managed by the group to source its business. Such dependence is mitigated by a strong alignment of interest between Halldora Re and the MGAs.
