AM Best Withdraws Credit Ratings of NEWGT Reinsurance Company, Ltd.
- September 04, 2026 08:49 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of NEWGT Reinsurance Company, Ltd. (NEWGT) (Bermuda). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect NEWGT’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 ratings also reflect NEWGT’s latest business plan to wind down in the near term after its remaining policies are fully novated to GUNA Re, which AM Best views as NEWGT’s re-domiciled entity established in the Cayman Islands with a largely identical shareholding structure, management team and business objectives with NEWGT. The ratings also consider the support that NEWGT received from its parent, ITOCHU Corporation (ITOCHU), which AM Best expects to continue throughout the transfer of the company’s remaining business and the winding-down process.
NEWGT’s balance sheet strength assessment reflects a material improvement in its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), as of June 2026, with reduced underwriting risk and credit risk following a transfer of most of its underwriting portfolio. AM Best expects the company to maintain a good capital buffer to support its modest remaining business, which are expected to be fully transferred to GUNA Re in the near term. NEWGT’s investments consist of cash and term deposits, including term deposit agreements with its group company, ITOCHU Treasury. Given the terms and conditions of NEWGT’s existing term deposit agreements and the credit profile of ITOCHU Treasury, the liquidity and credit risks associated with the term deposits in the coming years are deemed to be low.
NEWGT’s reported consistently positive results over the past five-year period (fiscal year 2020 to fiscal year 2024). During the transfer process of remaining policies and the winding-down period, its key underwriting metrics are expected to be pressured, partially offset by its investment return, which support the current adequate operating performance assessment. NEWGT’s business profile assessment reflects the company’s materially reduced business scale and its plan to wind down in near term.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.