AM Best Revises Outlooks For Somerset Re
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Rating of “a-” of Somerset Reinsurance Ltd. [Somerset Re] [headquartered in Pembroke, Bermuda].
A statement from the ratings agency said, “The Credit Ratings reflect Somerset Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management [ERM].
“The change in outlooks reflect the expectation that the balance sheet strength will continue to improve. More specifically, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR], is expected to remain at the strongest level. Liquidity is assessed as more than adequate to fund anticipated short-term obligations of the current blocks of business held on the company’s balance sheet.
“Furthermore, the company continues to enhance its position in its markets of operation as the company has executed several reinsurance agreements with known rated insurers, in line with the company’s business plan. Experience-related metrics are showing strong evidence of prudent pricing and investment management discipline.”
