AM Best has assigned a financial strength rating (FSR) of ‘A’ (Excellent) to Sompo Japan Canopius Reinsurance.
The reinsurance firm has also received an FSR of and ‘A+’ from Standard & Poor’s (S&P).
AM Best said that the positive ratings reflect the fact that Sompo Japan Canopius Reinsurance has a robust business profile and supportive risk-adjusted capitalisation, as well as strong expected operating results and risk management capabilities.
The rating firm also recognised the importance of the company to Sompo Japan Nipponkoa Insurance and its close integration with Sompo Holdings group companies.
Both rating agencies also recognised that the company is backed by an unlimited parental guarantee, with S&P particularly highlighting this explicit parental support.
Zurich-based Sompo Japan Canopius Reinsurance has received formal approval from the Swiss regulator FINMA, and will begin writing business for January 1, 2016.
The company forms part of a new integrated global business unit which, together with Syndicate 4444, will write reinsurance business globally for Sompo Holdings under a shared brand.
The firm will underwrite third-party reinsurance business through a network of branches in Switzerland, Asia, Bermuda and the US, with property reinsurance initially representing the majority of premium income.
The firm said business generation will benefit from existing relationships and expertise within Canopius and the wider Sompo group.
“We’re pleased to receive regulatory approval and these strong ratings, which endorse the strength of our new company platform,” said Mike Duffy, chairman of Sompo Japan Canopius Reinsurance.
“This entity will be an important component of our reinsurance strategy and, by complementing our Lloyd’s operations, will enable us to offer brokers and clients increased choice, reach and scale in our delivery of high quality specialist products.”
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