Best’s News & Research Service - October 20, 2020 09:54 AM (EDT)
AM Best Assigns Preliminary Credit Assessment to Vantage Risk Ltd.
- October 20, 2020 09:54 AM (EDT)
Oldwick //BestWire// - AM Best has assigned a Preliminary Credit Assessment (PCA) to Vantage Risk Ltd. (Vantage) (Bermuda) with a Financial Strength Assessment of A- pca (Excellent) and a Long-Term Issuer Credit Assessment of “a-” pca. The outlook assigned to these PCAs is stable.
The PCAs reflect Vantage’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The very strong balance sheet assessment is based on a preliminary financing structure that projects supportive risk-adjusted capital that meets AM Best’s guidelines for newly formed organizations. This incorporates supportive risk-adjusted capital levels through a five-year start-up period. AM Best assesses Vantage’s operating performance as adequate based on the clearly defined business plan that contemplates a level of implementation and execution risk for a newly formed entity. AM Best views Vantage’s business profile as limited, given the execution risk associated with entering a highly competitive market, this risk is somewhat mitigated by the management team’s strong track record in the insurance and reinsurance industries. Furthermore, the business profile assessment reflects that, as new market entrants, the company will require a period to establish its brand and market position. A clearly defined ERM structure includes risk appetite and tolerance statements that focus on concerns specific with the business profile. The company’s risk management benefits from the depth and breadth of the procedures and policies designed by the experienced management team.
This press release relates to Preliminary Credit Assessments that have been published on AM Best’s website. For all assessment information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual assessments 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 and Assessment 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.