A.M. Best Affirms Credit Ratings Of Rembrandt
A.M. Best has affirmed the Financial Strength Rating of A [Excellent] and the Long-Term Issuer Credit Rating of “a” of Rembrandt Insurance Company, Ltd. [Rembrandt] [Bermuda]. The outlook of these Credit Ratings [ratings] remains stable.
A statement from the ratings agency said, “Rembrandt is a captive [re]insurer of Vitol Holding B.V. [Vitol], a holding company of a group engaged principally in trading petroleum-related products and commodities.
“The ratings reflect Rembrandt’s track record of very strong financial performance and excellent risk-adjusted capitalisation, as well as its importance to the Vitol group as a risk management tool.
“Rembrandt consistently generates strong operating results, as demonstrated by a five-year average return on capital of 14% [2012-2016]. Its strong financial performance is driven by excellent underwriting results, with an average five-year combined ratio of 11% [2012-2016], and is supported by good investment returns.
“The company’s risk-adjusted capitalisation remains excellent, supported by low net underwriting leverage and an outward reinsurance programme that is placed with a panel of financially strong reinsurers. A marginally offsetting rating factor is the captive’s concentrated asset base, with a loan facility provided by Rembrandt to the Vitol group, representing 59% of total assets at year-end 2016 [2015: 75%]. The investment risk associated with this loan is mitigated somewhat by terms that allow it to be redeemed at short notice.”
