Fitch awards Resolution Re 'A-' IFS rating
Fitch Ratings has published the 'A-' insurer financial strength (IFS) rating of Resolution Re. The rating outlook is stable.
Resolution Re's rating reflects Fitch's view that the entity is core to Resolution Life Group Holdings, as it is material to the group and expected to be used for both internal and external reinsurance opportunities.
Resolution Re's balance sheet includes about $25 billion of insurance liabilities on a net basis, with its largest transaction-to-date being the assumption of $15 billion of fixed index annuities on a net basis from Allianz Life.
Resolution Re's other recent reinsurance transactions include Swiss and Japanese liabilities.
In addition to Resolution Re, Resolution Life has subsidiaries in the U. and Australasia.
Resolution Re was the first operating entity of this iteration of the group and is the designated insurer for purposes of the Bermuda Monetary Authority's group regulation of Resolution Life.
Resolution Re's capital is viewed as 'strong' based on its YE 2021 Prism output, which is consistent with rating expectations.
The company's “risky” asset ratio of approximately 71% at YE 2021 based upon adjusted shareholders' equity compares favourably with the industry, Fitch said, adding that the largest component of the company's risky assets consists of Swiss real estate equity.
Earnings metrics have been modest, Fitch said, but are expected to improve, with capital deployed on recent transactions generating returns at target levels.