AM Best affirms Ascot Bermuda’s FSR

AM Best has affirmed the financial strength ratings (FSR) of ‘A’ (excellent) and the long-term issuer credit ratings (long-term ICR) of ‘a+’ (excellent) of Ascot Bermuda, as well as New York-headquartered Ascot Insurance Company (AIC), Ascot Specialty Insurance Company (ASIC) and Ascot Surety & Casualty Company (ASCC). AIC, ASIC and ASCC are collectively referred to as Ascot Insurance US Group.

The ratings of Ascot Bermuda and Ascot US reflect the consolidated balance sheet strength of Ascot, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Additionally, Ascot receives rating enhancement from its parent, CPP Investments, which is considered to be of superior financial strength and supportive of Ascot’s strategy.

AM Best views Ascot Bermuda and Ascot US as strategically important to Ascot: Ascot Bermuda is a platform for growth in Bermuda’s re/insurance market, while Ascot US is expected to become a source of diversification and growth within the US E&S and admitted lines market. Both are integrated fully within the group’s operations and management with Ascot US supported by a net worth maintenance agreement.

Ascot is a property and specialty re/insurance group, with a 2021 gross written premium of $2.8 billion. Ascot US and Ascot Bermuda increasingly provide diversification to this group’s underwriting portfolio, which has historically had a concentration in US property risks, AM Best said. While expansion remains subject to moderate execution risk, it added, Ascot has a stable and experienced management team that has been strengthened appropriately as its business has grown.