Ascot brings reinsurance under one roof
Ratings agency AM Best has upgraded Bermuda-based Ascot’s long-term issuer credit rating (ICR) to “a+” (Excellent) from “a” (Excellent). It also affirmed its financial strength rating (FSR) of A (Excellent). The same applies to the group’s New York-headquartered businesses Ascot Insurance Company (AIC) and Ascot Specialty Insurance Company (ASIC). The outlook of the long-term ICRs has been revised to stable from positive, whilst the outlook of the FSR is stable.
The agency also upgraded the long-term ICR of $400 million of 4.25% fixed rate senior unsecured notes issued by Ascot Group Limited and due in 2030. It changed its rating from “bbb” (Good) to “bbb+” (Good).
According to AM Best, the ICR upgrades reflect the group’s improved geographical and product diversification, achieved through its Bermudian and US operations. The ratings of both Bermuda and US businesses reflect the consolidated balance sheet strength of Ascot Group Limited, which AM Best assesses as strongest, it added, as well as an “adequate operating performance, neutral business profile and appropriate enterprise risk management”.
“Ascot Bermuda is viewed to be strategically important to Ascot as a platform for growth in the Bermudian reinsurance market, and as an internal reinsurer,” the agency stated. “Ascot US is viewed as strategically important for the group as a source for diversification and growth within the US admitted lines market, and is supported by a net worth maintenance agreement with Ascot. Both divisions are integrated fully within the group’s operations and management.”
The outlook of the long-term ICRs has been revised to stable from positive, whilst the outlook of the FSR is stable.
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