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 Bermuda-based Rembrandt Insurance Company, and the outlook is 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 of Rembrandt reflect the company’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 an average five-year adjusted return on capital of 15%. Its strong financial performance is driven by excellent underwriting results, with an average five-year combined ratio of 17%, and is supported by stable, albeit modest, investment income.
“The company’s risk-adjusted capitalisation remains excellent, supported by good internal capital generation, low net underwriting leverage and an outward reinsurance programme that is placed with a panel of financially strong reinsurers.
“A marginally offsetting factor is the captive’s concentrated asset base, with a loan facility provided by Rembrandt to the Vitol group, representing 75% of total assets at year-end 2015. The investment risk associated with this loan is somewhat mitigated by terms that allow it to be redeemed at short notice. “
