Best’s News & Research Service - October 15, 2020 03:06 PM (EDT)
AM Best Affirms Credit Ratings of Harrington Re Ltd. And Harrington Reinsurance Holdings Limited
- October 15, 2020 03:06 PM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Harrington Re Ltd. (Harrington). AM Best also has affirmed the Long-Term ICR of “bbb-” of Harrington Reinsurance Holdings Limited. Both companies are domiciled in Bermuda. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Harrington’s 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.
Harrington, which commenced operations in 2016, is sponsored by AXIS Capital Holdings Limited (AXIS) and The Blackstone Group Inc. (Blackstone). AXIS’ operating companies maintain an FSR of A (Excellent) and a Long-Term ICR of “a+” from AM Best. Blackstone was founded in 1985 and is a leading investment manager across a wide array of alternative asset strategies. Harrington seeks to leverage the strengths of both organizations’ expertise to generate strong overall returns.
Harrington continues to build out a diversified, multiline reinsurance book of business with a focus on medium to longer-tailed casualty lines and strict limitations on property catastrophe risk. Currently, Harrington does not directly face the market and business is sourced through cessions from AXIS. The investment portfolio is structured to have ample liquidity and diversification by asset class, while managing draw-down risk and seeking to provide strong absolute returns.
Given Harrington’s underwriting risk and alternative asset strategy, the company has a somewhat elevated risk profile with exposures to both the asset and liability sides of the balance sheet. However, Harrington continues to build its own independent risk management function but also benefits from expertise and systems from both its sponsors. Additionally, AM Best has stress-tested Harrington’s risk-adjusted capitalization for simultaneous adverse underwriting and investment events and it remains more than adequately capitalized under those current conditions.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.