AM Best Revises Outlooks to Positive for Somerset Reinsurance Ltd.

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- of Somerset Reinsurance Ltd. (Somerset Re) (headquartered in Pembroke, Bermuda).

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Business Wire, Inc.Business Wire, Inc.
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Tuesday, March 2, 2021
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Professional services, Insurance, Finance, Reinsurance companies, Actuarial science, Reinsurance, AM Best, Credit rating agency, Insurance, Finance, Tokio Millennium Re Ltd.
Geotags: 
NEW YORK, NEW JERSEY, United States, Europe, BERMUDA, CARIBBEAN, DUBAI, SINGAPORE, LONDON, HONG KONG, SOMERSET, PEMBROKE, AMSTERDAM, MEXICO CITY
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Summary
Key Points: 
  • AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- of Somerset Reinsurance Ltd. (Somerset Re) (headquartered in Pembroke, Bermuda).
  • The change in outlooks reflect the expectation that the balance sheet strength will continue to improve.
  • More specifically, risk-adjusted capitalization, as measured by Bests Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level.
  • AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry.


AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Somerset Reinsurance Ltd. (Somerset Re) (headquartered in Pembroke, Bermuda).

The Credit Ratings reflect Somerset Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The change in outlooks reflect the expectation that the balance sheet strength will continue to improve. More specifically, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level. Liquidity is assessed as more than adequate to fund anticipated short-term obligations of the current blocks of business held on the company's balance sheet. Furthermore, the company continues to enhance its position in its markets of operation as the company has executed several reinsurance agreements with known rated insurers, in line with the company’s business plan. Experience-related metrics are showing strong evidence of prudent pricing and investment management discipline.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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