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FOR IMMEDIATE RELEASE
LONDON - DECEMBER 12, 2022 01:41 PM (EST)
AM Best has assigned the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) to Legal & General Reinsurance Company No. 2 Limited. (L&G Re 2) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.
L&G Re 2 was established in 2021 and is ultimately owned by Legal & General Group Plc (L&G).
The ratings reflect L&G Re 2’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also factor in lift from L&G due to L&G Re 2’s importance to the group as a vehicle to compete and expand in pension risk transfer (PRT) markets outside the United Kingdom and United States, as well as the financial and operational support it receives from its parent.
L&G Re 2’s balance sheet strength is underpinned by risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), that AM Best expects to be maintained at the strongest level through a forecast period of five years. L&G has provided the initial capital and is expected to support the company’s business growth.
The adequate operating performance assessment considers the company’s five-year business plan. AM Best expects L&G Re 2 to grow its portfolio of Canadian PRT business gradually.
The company is expected to benefit from L&G’s knowledge and expertise in the PRT business, as well as the group’s investment platforms and risk management oversight.
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.