A.M. Best Affirms Credit Ratings Of Fidelis

July 25, 2017 | 0 Comments

A.M. Best has affirmed the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Ratings [Long-Term ICR] of “a-” of Fidelis Insurance Bermuda Limited [Fidelis] [Bermuda] and Fidelis Underwriting Limited [Fidelis UK] [United Kingdom].

A.M. Best also has affirmed the Long-Term ICR of “bbb-” of Fidelis Insurance Holdings Limited [Bermuda], the ultimate holding company. Concurrently, A.M. Best has affirmed the Long-Term Issue Credit Rating of “bb” on its $304 million [$287.15 million currently outstanding] 9% cumulative preference shares, due 2050. The outlook of these Credit Ratings [rating] is stable.

A statement from the ratings agency said, “The rating affirmations of Fidelis and Fidelis UK are based on strong risk-adjusted capitalization, an experienced management team with a proven track record and acceptance in the marketplace. Additionally, A.M. Best recognizes Fidelis’ ability to generate underwriting profit in its first full year of operation. Furthermore, Fidelis UK’s ratings recognize the support it receives from its affiliate, Fidelis, and from Fidelis Insurance Holdings Limited, the ultimate parent.

“Partially offsetting these positive rating factors are the start-up nature of the company, the volatility of operating results caused by business plan changes, greater investment risk associated with its alternative investment strategy, as well as the continued competition and capacity in the reinsurance marketplace, which contribute to the difficulty of business plan execution.

“Mitigating these concerns are the prudent underwriting leverage contemplated in Fidelis’ business plan and the diversified, multi-manager investment strategy. Fidelis’ assets are currently managed by 14 investment advisers who are registered with the Securities and Exchange Commission or the Financial Conduct Authority, with assistance from MAN Group FRM and Albourne Partners Ltd.”

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