AM Best

JANUARY 19, 2023 03:07 PM (EST)

AM Best Affirms Credit Ratings of Vantage Risk Ltd. and Affiliates

 Christopher Pennings, CPCU
Financial Analyst
+1 908 439 2200, ext. 5611

Dan Hofmeister, CFA, FRM, CAIA
Senior Financial Analyst
+1 908 439 2200, ext. 5385

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

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


OLDWICK - JANUARY 19, 2023 03:07 PM (EST)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Vantage Risk Ltd. (Bermuda) and its affiliates, Vantage Risk Specialty Insurance Company (Wilmington, DE) and Vantage Risk Assurance Company (Wilmington, DE), which do business as Vantage Group. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Vantage Group’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.

The ratings affirmation follows an active initial two years of operations for the group. Underwriting income was adversely impacted by elevated catastrophe losses in the group’s reinsurance operations for the second year in a row; however, AM Best expects projected combined ratios for 2022 to improve over 2021. In response to the heightened volatility, the group has implemented a strategy to move property catastrophe business off its balance sheet, but continue offering it through their insurance-linked securities (ILS) vehicles. This strategy is expected to provide Vantage with accretive income while reducing volatility in operating results.

The group continues to expand its primary insurance operations after a slow start in 2021 due to various operational challenges. As the group continues to execute on its business plans, the reinsurance portfolio will become relatively smaller than the primary portfolio and thus have less of an impact to the group’s bottom line. AM Best will continue to monitor the group’s progression as it enters its third year of operation. AM Best anticipates that the group’s operating performance will begin to stabilize as its business plan is executed.

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.

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