Calix Re secures A- AM Best rating following 2025 launch

Newly established Bermuda-based reinsurer Calix Re has been assigned an a- (excellent) financial strength rating and a long-term issuer credit rating of a- (excellent) with a stable outlook from AM Best, reflecting what the agency described as a very strong balance sheet and appropriate enterprise risk management.

AM Best assessed the entity’s balance sheet as very strong with adequate operating performance and appropriate enterprise risk management (ERM).

Following its formation in 2025, the majority of Calix Re’s business will initially be allocated to Japan-based fixed-term annuities. Initial capital is being supplied by the parent company, Challenger, and will be invested in various long-duration assets. 

AM Best reported that capitalisation is supported by an adequate level of liquidity based on the company’s planned asset allocation and liquidity risk management plan.

Break-even results are expected in the near-term, which AM Best will monitor for progress and deviations from the five-year plan. Overall execution risk exists under the company’s five-year plan.

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