AM Best Information Services

MARCH 26, 2021 11:01 AM (EDT)

AM Best Affirms Credit Ratings of Allied World Assurance Company Holdings, Ltd and Its Subsidiaries

 Guilherme Monteiro Simoes
Senior Financial Analyst
+1 908 439 2200, ext. 5301

Gregory Dickerson
Associate Director
+1 908 439 2200, ext. 5161

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644


OLDWICK - MARCH 26, 2021 11:01 AM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Allied World Assurance Company Holdings, Ltd’s (Bermuda) (Allied World Holdings) operating affiliates (collectively referred to as Allied World or the group). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” of Allied World Assurance Company Holdings, Ltd (Bermuda) and its downstream holding company, Allied World Assurance Company Holdings I, Ltd (Bermuda). AM Best also has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of “bbb” of the $500 million 4.35% senior unsecured notes of Allied World Assurance Company Holdings I, Ltd due 2025, which are unconditionally and irrevocably guaranteed by Allied World Holdings. The outlook of all of these Credit Ratings (ratings) is stable.

The ratings reflect Allied World’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The group’s operating performance has varied over the past five years due to catastrophe events and variability in net investment gains and losses. The group’s underwriting performance is in line with its peers and has benefited from recently improved market conditions in most of its business segments, as well as lower catastrophe losses in the past two years, as it reduces its exposure to natural catastrophe exposed lines. Allied World generates a low investment yield relative to its peers as its investment strategy, which includes both lower-risk, short-term high-quality bonds, and stocks, is managed for long-term accretion to capital via retained earnings.

The group’s risk-adjusted capital is supportive of its current underwriting strategy and premium growth, investment risks and catastrophe loss exposure. Liquidity is supported by short-term holdings, predominantly high quality fixed-income securities and cash.

Additionally, Allied World benefits from being part of Fairfax Financial Holdings Limited’s diversified business platform, decentralized yet collaborative business practices, and fungible and strong capital position.

Allied World maintains a neutral business profile. The group is a specialty (re)insurance entity that underwrites a diversified portfolio of property and casualty business. The company is well-diversified geographically, with a global market presence. Growth in the group’s business has benefitted since 2019 from improving market conditions and increased rates across all of its major lines of business.

Allied World maintains a comprehensive risk management program, which AM Best views as appropriate for the complexity of its operations and risk appetite.

The FSR of A (Excellent) and the Long-Term ICR of “a” have been affirmed with a stable outlook for the following operating subsidiaries of Allied World Assurance Company Holdings, Ltd:

  • Vantapro Specialty Insurance Company

  • Allied World Assurance Company, Ltd

  • Allied World Surplus Lines Insurance Company

  • Allied World Assurance Company (U.S.) Inc.

  • Allied World National Assurance Company

  • Allied World Specialty Insurance Company

  • Allied World Insurance Company

  • Allied World Assurance Company (Europe) Designated Activity Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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