Bermuda newcomer ASR Re receives rating

ASR Re, the Bermuda-based reinsurance entity of Africa Specialty Risks (ASR), has received ratings of ‘good’ from AM Best.

The reinsurer, which launched earlier in August, has received a financial strength rating of B++ and a long-term issuer credit rating of bbb+ from the rating agency, both typified as ‘good’.

In addition, AM Best has rated the outlook for the reinsurer’s credit rating as ‘stable’

ASR is a newly launched pan-African focused reinsurance group, formed out of a partnership between Helios Investment Partners and two seasoned executives specialising in this market.

These are Mikir Shah, the former CEO of AXA Africa Specialty Risks and Bryan Howett, former CEO of Old Mutual’s pan-African reinsurance operations.

It was capitalised with an initial injection of $20m, drawn from a $50m facility managed by Helios. The remaining $30m will be allocated throughout the company’s five-year business plan.

This financial security was a key driver of AM Best’s conclusion, supporting the Bermuda-based subsidiary to grow as it seeks new business.

A statement from AM Best added: “The adequate operating performance assessment considers the group’s five-year business plan, taking into account its competitive environment and heightened execution risk during the startup phase.

“AM Best expects the group's operating performance to rapidly improve in line with the five-year plan. This is supported by non-technical earnings from its managing general agent operations in London and Mauritius, through which the group’s business will be sourced.”