AM Best Assigns Credit Ratings To Arch Group
AM Best assigned Arch Group Reinsurance a Financial Strength Rating of A+ and Long-Term Issuer Credit Ratings of “aa-” with a stable outlook.
The ratings agency said, “AM Best has assigned the Financial Strength Rating of A+ [Superior] and the Long-Term Issuer Credit Ratings of “aa-” [Superior] to Arch Group Reinsurance Ltd. [Arch Group Re] [Bermuda]. The outlook assigned to these Credit Ratings [ratings] is stable.
“The ratings of Arch Group Re reflect its 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].
“Arch Group Re was founded in 2022 and operates as an intercompany reinsurer, providing the broader Arch Capital Group Ltd. [Arch] with capital efficiencies. While Arch Group Re has a limited operating history, all business is derived from the operating companies of Arch, which has historically produced profitable underwriting, and in recent years, double-digit returns on equity.
“The stable outlooks reflect AM Best’s expectation that Arch Group Re will assume profitable business from Arch intercompany business and remain well-capitalized as it is further utilized by the greater Arch organization and becomes integrated into Arch’s operations.”
