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FOR IMMEDIATE RELEASE
OLDWICK - MAY 30, 2023 11:19 AM (EDT)
AM Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) to Somerset Reinsurance Company (SRC) (Orlando, FL). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect SRC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
SRC is a startup reinsurance company; however, this subsidiary of Somerset Reinsurance Ltd (Somerset Re Ltd.) (Bermuda) is expected to rely on its parent for services as it expands its business profile. To manage its business growth and regulatory capital requirements, SRC is expected to receive capital support over its planned growth period as needed. That planned growth is moderately aggressive in the early years of expansion, where the company is expected to seek reinsurance opportunities for products on the low to moderate risk continuum. The management team has deep industry expertise and is expected to leverage its use of direct channels, brokers and strategic partners to garner its new business opportunities and its U.S. domicile should open up more domestic-sourced business in its target market.
The ratings are also afforded one notch of lift off of Somerset Re Ltd. The addition of SRC adds the Somerset Re Group brand flexibility to conduct business in the U.S. insurance market. AM Best also expects SRC’s operating capabilities to be fully integrated for non-underwriting activities and co-sourced with Somerset Re Ltd. for external functions as well.
The stable outlooks reflect AM Best’s expectation that SRC will build upon its projected planned growth of reinsurance solutions to its targeted market, while prudently managing its assets and liabilities, as well as its risk-based capital as business is added.
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 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.