AM Best Affirms Credit Ratings Of Vantage Risk
AM Best has affirmed the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Rating of “a-” [Excellent] of Vantage Risk Ltd. [Bermuda] and its affiliate, Vantage Risk Specialty Insurance Company [Chicago, IL], which do business as Vantage Group. The outlook of these Credit Ratings is stable.
A statement from the ratings agency said, “The ratings reflect Vantage Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
“The ratings affirmation follows an active first year of operations for the group. Underwriting income was significantly impacted by elevated catastrophe losses in the group’s reinsurance operations. Furthermore, employee turnover and market conditions in the group’s primary insurance operations resulted in lower primary insurance premium than originally anticipated, overweighting the impact of the reinsurance portfolio losses.
“As the group continues to execute on its business plans, the reinsurance portfolio will become relatively smaller than the primary portfolio and thus have less of an impact to the group’s bottom line. Despite these challenges, the group has continued to execute on many of its goals in its first year, hiring staff members at various levels and acquiring new primary insurance companies to support the business plans.
“AM Best will continue to monitor the group’s progression as it enters its second year of operation. AM Best anticipates that the group’s operating performance will begin to stabilize as its business plan is executed.“
