AM Best Assigns Credit Ratings To InEvo Re
AM Best has assigned a Financial Strength Rating of A- [Excellent] and a Long-Term Issuer Credit Rating of “a-” [Excellent] to InEvo Re Ltd. [Hamilton, Bermuda] and said the outlook assigned to these Credit Ratings is stable.
The ratings agency said, “The ratings reflect InEvo Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile, appropriate enterprise risk management and strong capital support from its parent, Macquarie Group Limited [Macquarie Group].
“InEvo Re has the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio [BCAR]. The company’s overall balance sheet strength is supported by sufficient capital and capital sources from Macquarie Asset Management and Macquarie Group. InEvo Re maintains very strong balance sheet metrics, and the parent does provide explicit support to ensure capital is maintained above targets.
“InEvo Re is expected to achieve near-term profitability and has maintained prudent expense management, creating a scalable operating platform that should support future growth. Performance is largely driven by investment performance, with profitability analysis assessed on a deal-by-deal basis, as InEvo Re is expected to specialize in longer-term dated liabilities, such as pension risk transfer. AM Best notes the company has benefited from a growing demand for asset-intensive reinsurance across its core markets, resulting in adequate operating performance; nevertheless, InEvo Re remains a new entrant into an already competitive market segment.
“InEvo Re is a wholly owned subsidiary of Macquarie Group and is a Class E Bermuda regulated reinsurer. InEvo Re is purpose built for asset-intensive reinsurance, designed to support life insurers in de-risking long-dated liabilities. While InEvo Re Ltd. is a new entrant to the reinsurance market; it benefits from the operational support and investment expertise of Macquarie Group and Macquarie Asset Management, particularly in private credit and long-duration asset strategies aligned with its long-term liabilities.”
