AM Best has assigned ratings to Fontana Reinsurance and its US counterpart, two subsidiaries of the casualty and specialty venture recently launched by Bermuda reinsurer RenRe.
Fontana Re has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent), and Fontana Re US received the same ratings, all with stable outlooks.
AM Best said that the ratings reflect each unit’s balance sheet strength, which AM Best assesses as very strong, as well as their adequate operating performance, neutral business profile and very strong enterprise risk management (ERM).
Parent company Fontana Holding is a joint venture between RenRe and various third-party capital partners.
It will be managed solely by Renaissance Underwriting Managers (RUM) and is expected to be consolidated into RenRe’s financial statements.
Fontana has $475 million in committed capital and has assumed a whole account quota share of RenRe’s casualty and specialty book.
Analysts noted that the ratings assigned to the Fontana entities account for the strength and depth of RenRe’s management team and its leadership in ERM, as well as the benefits that should accrue to Fontana as a result of RenRe —through RUM—managing underwriting, pricing, risk selection, reserves, investments and claims.
