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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 16, 2022 09:09 AM (EST)
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 Fontana Reinsurance Ltd. (Fontana Re). At the same time, AM Best has assigned an FSR of A (Excellent) and a Long-Term ICR of “a+” (Excellent) to Fontana Reinsurance U.S. Ltd. (Fontana Re US). The outlook assigned to these Credit Ratings (ratings) is stable. Both companies are domiciled in Hamilton, Bermuda.
The ratings of Fontana Re reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and very strong enterprise risk management (ERM).
The ratings of Fontana Re US reflects its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and very strong ERM.
Both Fontana Re and Fontana Re US are owned by Fontana Holdings L.P. (Fontana). Fontana is a joint venture between RenaissanceRe Holdings Ltd. (RenaissanceRe) [NYSE:RNR] and various third-party capital partners that is RenaissanceRe’s first joint venture focused on casualty and specialty risk. Fontana will be managed solely by Renaissance Underwriting Managers, Ltd. (RUM) and is expected to be consolidated into RenaissanceRe’s financial statements.
Fontana has USD 475 million in committed capital and has assumed a whole account quota share of RenaissanceRe’s casualty and specialty book. The ratings assigned to the Fontana entities reflect the strength and depth of RenaissanceRe’s management team and its leadership in ERM, as well as the benefits that should accrue to Fontana as a result of RenaissanceRe—through RUM—managing underwriting, pricing, risk selection, reserves, investments, claims, etc.
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.