AM Best Affirms Credit Ratings Of Harrington Re
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, “The ratings reflect Harrington’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
“Harrington, which commenced operations in June 2016, is sponsored by AXIS Capital Holdings Limited [AXIS] and The Blackstone Group L.P. [Blackstone]. AXIS’ operating companies maintain 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 to generate strong overall returns.
“Harrington continues to build out a diversified, multiline reinsurance book of business with a focus on longer-tailed casualty lines and 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.
“Factors that could lead to positive rating actions for Harrington include meeting or exceeding its business plan over the long term, which includes consistently strong operating results while maintaining strong risk-adjusted capitalization. Negative rating actions could occur if Harrington does not successfully execute its business plan over the long term, or experiences underwriting or investing losses outside of expectations or a material decline in risk-adjusted capitalization.”
