AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- of Humboldt Re Limited (Humboldt Re) (Guernsey). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect Humboldt Res balance sheet strength, which is categorised as strongest by AM Best, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM) framework.
Humboldt Res balance sheet strength is underpinned by its risk-adjusted capitalization being at the strongest level, a flexible retrocession programme, which minimizes counterparty credit risk, and a relatively conservative investment profile. AM Best expects prospective balance sheet strength to remain at the strongest level as Humboldt Re expands its portfolio.
Humboldt Re is a privately owned entity based in Guernsey that provides mainly short-tail property and specialty lines reinsurance. Since it started operating at the end of 2015, the company has derived all of its business solely using the origination capabilities of Credit Suisses Insurance-Linked Strategies team, a leading insurance-linked securities hedge fund, which has approximately USD 9 billion of assets under management.
During 2018, the company is projected to underwrite a globally diversified insurance portfolio producing more than USD 240 million of gross written premiums, with a heavy bias toward catastrophe-exposed business lines. The company is anticipated to report a technical and operating loss for the year, driven by catastrophe losses in North America and Japan during the second half of the year. As a result, AM Best expects Humboldt Res combined ratio for 2018 to be in excess of 105%.
WANT TO BUILD A FINANCIAL EMPIRE?
Subscribe to the Global Banking & Finance Review Newsletter for FREE Get Access to Exclusive Reports to Save Time & Money
By using this form you agree with the storage and handling of your data by this website. We Will Not Spam, Rent, or Sell Your Information.
This press release relates to Credit Ratings that have been published on AM Bests 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 Bests Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Bests Credit Ratings. For information on the proper media use of Bests Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Bests Credit Ratings and AM Best Rating Action Press Releases.
AM Best is the worlds oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright 2018 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
+44 20 7397 0321
Associate Director, Analytics
Manager, Public Relations
439 2200, ext. 5159
Director, Public Relations
+1 908 439
2200, ext. 5644