AM Best has upgraded the financial strength rating of a host of ACE subsidiaries from A+ (Superior) to A++ (Superior), including ACE Bermuda Insurance, ACE Tempest Re and parent, ACE Tempest Life Reinsurance.
The rating agency commended ACE for its global book, capitalisation and prudent acquisitions in recent years. It added that controlled financial leverage, a relatively conservative investment portfolio and favorable loss reserve development in recent years had helped the re/insurer’s position.
AM Best commended management’s “experience and consistent focus on underwriting profitability generated by effective risk selection and pricing standards, and maintenance of appropriate policy limits and exposure to catastrophes, including the use of reinsurance to manage net retentions”.
The rating agency added that ACE’s strong ERM programme has helped to sustain capital levels and earnings in spite of sustained soft market conditions, the global financial crisis and catastrophe events.
The report warns that conditions will require the company to continue to remain focused in “executing pricing discipline, product and risk selection capabilities and managing exposure levels to generate continued positive underwriting results”.
ACE, AM Best, ratings, insurance, reinsurance, Bermuda