Reinsurance companies Somerset Reinsurance Ltd. and Somerset Reinsurance Company have had their credit ratings improved by financial rating organization AM Best.
AM Best Upgrades Financial Ratings for Somerset Re and SRC
In a significant move, credit rating agency AM Best has upgraded the Financial Strength Ratings and Long-Term Issuer Credit Ratings for Somerset Reinsurance Ltd. (Somerset Re) and Somerset Reinsurance Company (SRC). The decision was made due to the companies' strong risk-adjusted capitalization, positive core earnings trends, premium growth, and effective execution of their business plan.
The Financial Strength Ratings for Somerset Re and SRC have been elevated from A- (Excellent) to A (Excellent). Similarly, the Long-Term Issuer Credit Ratings have been upgraded from “a-” to “a” (both Excellent). The stable outlook for both companies reflects expectations of continued capital infusions supporting further new business growth without the need for additional funding.
AM Best highlighted several key reasons for the upgrades. These include strong balance sheets, adequate operating performance, and the companies' ability to execute their business plan. Additionally, the well-developed enterprise risk management (ERM) programs and an experienced management team with deep industry ties contributed to the rating improvements.
The upgrade reflects confidence in Somerset Re and SRC's financial strength, management capabilities, and business outlook based on current and projected performance and capital adequacy. The rating upgrades for SRC also reflect its support of the overall business plan.
Liquidity for Somerset Re 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.
For more information, visit www.ambest.com. AM Best's contacts for media inquiries include Stephen Vincent, Edward Kohlberg, Christopher Sharkey, and Al Slavin. Their contact details can be found on the official AM Best website.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. The agency operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City.
The upgrade comes at a time when AM Best anticipates capital infusions to continue that will support further new business growth over the intermediate term without the need to access additional funding. This implies a well-capitalized and growing reinsurance business for Somerset Re and SRC.
Somerset Re and SRC provide reinsurance solutions for asset-intensive life insurance and annuity business. Their reinsurance solutions are backed by a very experienced reinsurance management team with deep ties to the industry.
In summary, the upgrades by AM Best are a testament to Somerset Re and SRC's financial strength, management capabilities, and business outlook. The companies' strong risk-adjusted capitalization, positive core earnings trends, premium growth, and effective execution of their business plan have been recognised and rewarded with these upgrades.
The upgrades in Financial Strength Ratings for Somerset Re and SRC by AM Best indicate recognition and reward for their strong risk-adjusted capitalization, positive core earnings trends, premium growth, and effective business plan execution. The improved Long-Term Issuer Credit Ratings reflect ongoing capital infusions supporting business growth, without necessitating additional funding, suggesting a growing and well-capitalized reinsurance business in the cloud of finance.
