AM Best has affirmed the financial strength rating of A- (Excellent) of Fidelis Insurance Bermuda (Fidelis) and the UK-based Fidelis Underwriting (Fidelis UK), both subsidiaries of Fidelis Insurance Holdings. The outlook for each rating is stable.
Fidelis operates as a Bermuda-based re/insurer writing a global property re/insurance portfolio.
AM Best stated that the ratings for Fidelis and its subsidiaries are based on an excellent projected risk-adjust capital position, prudential business plan and knowledgeable management team.
The positive ratings were partially offset by the start-up nature of the companies and investment risk associated with the companies’ alternative investment strategy, as well as the competitive conditions and excess capacity in the reinsurance marketplace that may challenge the execution of the business plan.
According to AM Best, Fidelis UK’s ratings recognise the support it receives from its affiliate, Fidelis, and from Fidelis Insurance Holdings.
AM Best said the ratings are supported by an amount of capital that has met its stringent requirements for newly formed companies.
AM Best believes that Fidelis’ underwriting risk coupled with its alternative investment strategy creates an elevated-risk profile that could adversely influence the company’s risk-adjusted capitalisation. Mitigating these concerns are the prudent underwriting leverage contemplated in Fidelis’ business plan and the diversified, multi-manager investment strategy.
AM Best, Ratings, Fidelis UK, Fidelis Bermuda, Insurance, Reinsurance