AM Best assigns stable ratings to Munich Re Bermuda
AM Best has assigned a financial strength rating of A+ (Superior) and a long-term issuer credit rating of “aa” to Munich Re of Bermuda, (Munich Re Bermuda), a wholly owned indirect subsidiary of Munich Reinsurance.
The rating agency said that the outlook assigned to these ratings is stable. The ratings of Munich Re and other main subsidiaries remain unchanged.
According to AM Best the ratings reflect Munich Re Bermuda’s strategic importance and integration into its ultimate parent company, Munich Re, as a vehicle for placing the group’s related life US reinsurance business. Therefore, Munich Re Bermuda’s ratings are aligned with that of Munich Re, and reflective of the group’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, very favourable business profile and very strong enterprise risk management.
Munich Re Bermuda was formerly named Princeton Eagle West Insurance Company and was authorised to operate property/casualty business, all of which is in runoff. The company was renamed Munich Re of Bermuda in March 2018 and was repurposed as a Class C Insurer by the Bermuda Monetary Authority in order to serve as an authorised reinsurer of the Munich Re group. Munich Re will support the newly repurposed entity by providing an excess of retention and excess of loss reinsurance treaty. The parent provided explicit support via a capital contribution of $330 million.
