AM Best affirms Harrington Re ratings
AM Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the long-term issuer credit rating (long-term ICR) of “a-” of Bermuda-based Harrington Re.
The rating agency also has affirmed the long-term ICR of “bbb-” of Harrington Reinsurance Holdings, which is also domiciled in Bermuda. The outlook of these credit ratings is stable.
AM Best said that the ratings reflect Harrington’s balance sheet strength, which it categorises as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Harrington, which commenced operations in June 2016, is sponsored by AXIS Capital Holdings (AXIS) and The Blackstone Group. AXIS’ operating companies maintain an FSR of A+ (Superior) and a Long-Term ICR of “aa-” from AM Best. Harrington seeks to leverage the strengths of both organisations’ expertise to generate strong overall returns.
According to AM Best Harrington continues to build out a diversified, multiline reinsurance book of business with a focus on longer-tailed casualty lines and strict limitations on property catastrophe risk. The investment portfolio is structured to have ample liquidity and diversification by asset class, while managing drawdown risk and seeking to provide strong absolute returns.
The rating agency added that the factors that could lead to positive rating actions for Harrington include meeting or exceeding its business plan over the long term, which includes consistently strong operating results while maintaining strong risk-adjusted capitalisation.
However, negative rating actions could occur if Harrington does not successfully execute its business plan over the long term, or experiences underwriting or investing losses outside of expectations or a material decline in risk-adjusted capitalisation.
