AM Best has affirmed the financial strength rating of A- (Excellent) of Fidelis Insurance Bermuda and Fidelis Underwriting. AM Best also has affirmed the long-term issue credit rating of “bbb-” of Bermuda-based Fidelis Insurance Holdings, the ultimate holding company. The outlook of these ratings is stable.
AM Best said that the rating affirmations of Fidelis and Fidelis UK are based on strong risk-adjusted capitalisation, an experienced management team with a proven track record and acceptance in the marketplace. Additionally, the rating agency said that it recognises Fidelis’ ability to generate underwriting profit in its first full year of operation. Furthermore, Fidelis UK’s ratings recognise the support it receives from its affiliate, Fidelis, and from Fidelis Insurance Holdings, the ultimate parent.
However, the rating agency pointed out that partially offsetting these positive rating factors are the start-up nature of the company, the volatility of operating results caused by business plan changes, greater investment risk associated with its alternative investment strategy, as well as the continued competition and capacity in the reinsurance marketplace, which contribute to the difficulty of business plan execution. Mitigating these concerns are the prudent underwriting leverage contemplated in Fidelis’ business plan and the diversified, multi-manager investment strategy.
Fidelis Insurance Bermuda, Fidelis Underwriting, AM Best, Rating, Bermuda