AM Best Affirms Credit Ratings Of SiriusPoint
AM Best has revised the outlook of the rated operating subsidiaries of SiriusPoint Ltd to Positive from Stable, citing the Company’s “very strong balance sheet”.
The ratings agency said, “AM Best has affirmed the Financial Strength Rating of A- [Excellent] and the Long-Term Issuer Credit Ratings [Long-Term ICR] of “a-” [Excellent] of SiriusPoint’s rated operating subsidiaries. Additionally, the rating agency has affirmed the Long-Term ICR of “bbb-” [Good] of SiriusPoint.
“AM Best said the revision of the outlook to Positive from Stable reflects SiriusPoint’s improved balance sheet strength following actions taken by management including the derisking of the investment portfolio, reduction in catastrophe exposure, and the recent buy-back of shares and warrants previously held by CM Bermuda Ltd.”
“This outlook revision is a reflection of our journey towards stability, underwriting profitability, and becoming a best-in-class insurer and reinsurer,” said Scott Egan, Chief Executive Officer of SiriusPoint. “This is further recognition of SiriusPoint’s achievements and the work we have done to reshape our future. I am proud of the team at SiriusPoint who have worked with dedication and commitment to improve our company profile, balance sheet strength, and underwriting performance.”
The ratings agency added, “The ratings reflect SiriusPoint’s consolidated 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.”
“AM Best expects that the group will maintain its risk-adjusted capitalization comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio [BCAR], supported by prudent capital management, effective underwriting exposure management and positive operating results.”
“The financial strength rating of A- [Excellent] and the Long-Term ICRs of “a-” [Excellent] have been affirmed with the outlooks revised to positive from stable for the following subsidiaries of SiriusPoint:
- SiriusPoint America Insurance Company
- SiriusPoint Bermuda Insurance Company Ltd.
- SiriusPoint International Insurance Corporation [publ]
- SiriusPoint Specialty Insurance Corporation
“AM Best’s revised outlook for SiriusPoint comes just one month after Fitch Ratings announced it had affirmed the ratings of SiriusPoint, including its Long-Term Issuer Default Rating at ‘BBB’, its senior debt rating at ‘BBB-‘ and its Insurer Financial Strength [IFS] rating at ‘A-‘ [Strong] of SiriusPoint’s subsidiaries. It also revised the Company’s Outlook to Positive from Stable.”
