A.M. Best Affirms Credit Ratings Of Harrington Re

July 9, 2017

A.M. Best has affirmed the Financial Strength Rating [FSR] of A- [Excellent] and the Long-Term Issuer Credit Rating [Long-Term ICR] of “a-” of Harrington Re Ltd. [Harrington]. A.M. Best also has affirmed the Long-Term ICR of “bbb-” of Harrington Reinsurance Holdings Limited. Both companies are domiciled in Bermuda. The outlook of these Credit Ratings [ratings] is stable.

A statement from the ratings agency said, “Harrington, which commenced operations in June 2016, is sponsored by AXIS Capital Holdings Limited [AXIS] and The Blackstone Group L.P. [Blackstone]. The lead operating company of AXIS, AXIS Specialty Limited has an FSR of A+ [Superior] and a Long-Term ICR of “aa-” from A.M. Best. Blackstone was founded in 1985 and is a leading investment manager across a wide array of alternative asset strategies. Harrington seeks to leverage the strengths of both organizations’ expertise.

“The ratings reflect Harrington’s strong risk-adjusted capitalization, the credibility and capability of management, and the strong qualitative and quantitative attributes of the sponsors. Despite the significant challenges in the reinsurance sector, Harrington is working toward building a diversified, multi-line reinsurance book of business with strict limitations on property catastrophe risk. The investment portfolio is structured to have ample liquidity and diversification by asset class, while managing drawdown risk and seeking to provide strong absolute returns.

“Negative rating actions could occur if Harrington is unsuccessful in executing its business plans over the long term, experiences outsized investment or catastrophe loss relative to peers or A.M. Best’s expectation, has strained risk-adjusted capitalization, or loses key personnel.

“Positive rating actions could occur if the company meets or exceeds its business plans over the long term, while demonstrating sustainable operating results and maintaining strong risk-adjusted capitalization.”

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