AM Best

AM Best Upgrades Credit Ratings of Kelvin Re Limited; Revises Under Review Status to Negative


Dale Kirby
Financial Analyst
+44 20 7397 0276

Tim Prince
Director, Analytics
+44 20 7397 0320
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


LONDON - MARCH 17, 2023 01:53 PM (EDT)
AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” (Good) from “bbb-” (Good) of Kelvin Re Limited (Kelvin Re) (Guernsey). Concurrently, AM Best has maintained the under review status for these Credit Ratings (ratings) and revised the implications status to negative from developing.

The ratings reflect Kelvin Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management.

The rating actions follow the acquisition of Kelvin Re’s former parent, Cowen Inc. (Cowen), by The Toronto-Dominion Bank (TD Bank) on 1 March 2023. The rating upgrades reflect the removal of ratings drag from Cowen, with Kelvin Re becoming a directly owned subsidiary of TD Bank upon completion, along with a revision of the business profile assessment to very limited.

The under review with negative implications status reflects uncertainty regarding Kelvin Re’s future ownership, given that AM Best does not expect the company to form a part of TD Bank’s long-term plans. AM Best expects to resolve the under review status once there is certainty over Kelvin Re’s future ownership and strategy.

Kelvin Re has been in run-off since December 2020, and its short-tail book of property-related reserves are expected to develop positively over the coming years. The company is not expected to underwrite any new business. Kelvin Re had capital of USD 420 million at year-end 2022 compared with gross insurance reserves of USD 158 million. While the company’s investment portfolio is concentrated toward a loan to Cowen, U.S. short-dated Treasuries and an alternative investment strategy, there are sufficient assets held in low risk, liquid investments to adequately cover net reserves.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising 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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AMB# Company Name
093711 Kelvin Re Limited