AM Best upgrades Fidelis rating
AM Best has upgraded Fidelis’ financial strength rating to A (excellent) from A- (excellent).
The rating applies to of Fidelis Insurance Bermuda, Fidelis Underwriting UK and Fidelis Insurance Ireland.
AM Best said Fidelis’ balance sheet was very strong, while it has an adequate operating performance, neutral business profile and appropriate enterprise risk management.
Fidelis maintains the strongest level of risk-adjusted capitalisation, as measured by AM Best’s capital adequacy ratio. Its operating performance has been supported by very strong underwriting results and solid investment returns, the rating agency said.
“Fidelis’ disciplined underwriting, experienced management team and its acceptance and recognition by the market have allowed for solid underwriting performance over the past three years,” AM Best said. “Performance also benefits from earnings generated through Fidelis’ diversified business platform, including its establishment of managing general agencies and a sponsorship of a special-purpose insurer.”
AM Best said the re/insurer’s investment returns benefited from its focus on holding the majority of its assets in fixed-income securities and cash and cash equivalents, with a small allocation to alternative investments.
