Canopius has ratings outlook raised to stable

AM Best said the change reflected the company's improved underwriting performance.

Canopius Group, which owns a Bermuda-based reinsurer and is led by Neil Robertson, has had its outlook raised from negative to stable by ratings agency AM Best after it improved its performance in the last two years. 

The ratings agency said it has affirmed the financial strength rating of A- of Canopius US Insurance based in Delaware and Canopius Reinsurance in Bermuda. 

"Canopius’ underwriting results showed continuing recovery in 2022, after underperforming during the period 2017-2020," the ratings agency said. "AM Best expects the group to report good underwriting and investment performance for 2023. Prospectively, Canopius is expected to deliver solid operating profitability, benefitting from the actions management has taken over recent years to reduce exposure to natural catastrophe events, as well as a strong rating environment.

"The revision of the outlooks to stable from negative reflects an improvement in Canopius’ risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to have recovered to the strongest level as at year-end 2023, up from the strong level as at year-end 2022," the company said. "Risk-adjusted capitalisation is expected to stabilise at a similar level."

AM Best said the credit ratings reflected Canopius’ balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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