A.M. Best Affirms Ratings Of Endurance Holdings
A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Endurance Specialty Insurance Ltd. and its affiliates. Concurrently, A.M. Best has affirmed the ICR of “bbb” and debt ratings of their publicly traded parent, Endurance Specialty Holdings, Ltd. Both companies are domiciled in Bermuda. The outlook for all ratings is stable.
A statement from the ratings agency said, “The ratings reflect Endurance’s strong level of risk-adjusted capitalization, specialty focused, diversified business profile, relatively solid operating performance, experienced management team and its solid enterprise risk management (ERM) program.
“Endurance continues to execute its strategy of providing specialty insurance and reinsurance, while the management team works towards transforming the company by increasing its scale and market presence. However, there continues to be market challenges that will need to be overcome, as casualty rates remain soft, capacity is abundant, investment yields are low and global economic uncertainty remains part of the landscape. While the market environment remains competitive, Endurance continues to adhere to its underwriting standards and declines business that does not meet its underwriting criteria.
“Endurance has built a solid ERM framework that has evolved with the company and allows the entire organization to absorb significant losses. Nonetheless, operating performance can help drive balance sheet strength or erode it; as such, A.M. Best will continue to monitor Endurance concerning that aspect as part of its overall analysis.
“Factors that could lead to rating upgrades and/or a positive outlook include Endurance maintaining strong risk-adjusted capital levels and the continuation of a consistently strong operating profitability relative to its peer group. Factors that could lead to rating downgrades and/or a negative outlook include outsized catastrophe or investment losses relative to its peer group, unfavorable operating profitability trends and/or a significant decline in risk-adjusted capital that would not be supportive of the current rating level.”
