Best’s News & Research Service - December 13, 2018 02:34 PM (EST)
AM Best Assigns Credit Ratings to Fidelis Insurance Ireland Designated Activity Company
- December 13, 2018 02:34 PM (EST)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Fidelis Insurance Ireland Designated Activity Company (FIID) (Ireland). The outlook assigned to these Credit Ratings (ratings) is stable.
FIID has been made part of the Fidelis Insurance Holdings Limited (Fidelis or the group) rating unit via the group (g) affiliation code. The ratings reflect Fidelis’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Additionally, FIID benefits from implicit and explicit support provided by its parent, including intra-group reinsurance and a financial guarantee.
FIID was established as part of Fidelis’ Brexit contingency plan and is deemed to be strategically important to the group’s overall business strategy. Through FIID, Fidelis will continue to have undisrupted access to the European Economic Area (EEA) market, irrespective of the final terms of U.K.’s exit from the European Union.
Fidelis’ very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), strong liquidity and financial flexibility contribute to AM Best’s balance sheet assessment of very strong. Fidelis generated underwriting profit in 2016, its first full year of operation, and continued the positive trend in 2017. Additionally, the underwriting gains are supplemented by investment income and a healthy fee income generated through Fidelis’ various partnerships. Fidelis’ overall operating performance is assessed as adequate.
Fidelis is a global provider of specialty insurance and reinsurance products through its, currently, two wholly owned subsidiaries - Fidelis Insurance Bermuda Limited and Fidelis Underwriting Limited. While Fidelis is still in its start-up phase and is one of the newest Bermuda players, the group has demonstrated strong acceptance by the market, as evidenced by the stable and consistent year-over-year growth. Additionally, the group has a strong senior management team with an excellent reputation and a proven track record, contributing to a neutral business profile assessment. Furthermore, AM Best considers Fidelis’ ERM as developed and appropriate for its overall business risk profile.
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 Understanding 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.
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