A.M. Best Affirms Credit Ratings of Blue Whale Re Ltd.
28 March 2017 - 6:23AM
Business Wire
A.M. Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+” of
Blue Whale Re Ltd. (Blue Whale) (Burlington, VT). The
outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Blue Whale`s strong risk-adjusted
capitalization and conservative operating strategy. The ratings
also consider the company`s critical and central role, and
favorable profile as part of the Pfizer Group, as well as the
excellent operations performance. Partially offsetting these
positive rating factors are Blue Whale`s very large gross and net
underwriting exposures to property losses, and its dependence on
reinsurance.
Blue Whale is a single-parent captive of Pfizer Inc.
(Pfizer) [NYSE: PFE], a leading global pharmaceutical company. As
Blue Whale (re)insures Pfizer`s global property exposures, it plays
an important role in Pfizer`s overall enterprise risk management
and assumes a critical role in protecting the Pfizer Group`s
assets. Thus, Blue Whale benefits from Pfizer Group`s extensive
risk management and loss control programs.
Blue Whale operates at conservative underwriting leverage
levels; however, it provides coverages with extremely large limits,
and its gross exposures per loss occurrence are elevated. Although
Blue Whale benefits from reinsurance protection, its net retentions
remain very substantial. Reinsurance is provided by a large panel
of reinsurers, and Blue Whale relies on significant capacity to
support its obligations. Therefore, it is heavily dependent on
reinsurance. Nevertheless, A.M. Best recognizes the quality of the
reinsurers, and the substantial financial resources and support
available to the captive as part of the Pfizer Group.
Blue Whale’s ratings and outlooks could be upgraded if the
parent’s and company’s operating performance improves, and
risk-adjusted capital remains supportive of the ratings. Negative
rating impact could occur if underwriting performance declines and
demonstrates volatility, impacting earnings and capitalization
negatively over time. Negative rating impact also could occur if a
material shift in risk profile undermines the company’s stability
and profitability. Additionally, negative rating impact could occur
if the parent’s credit profile deteriorates.
A.M. Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the
United States and throughout the world. For current Best’s Credit
Ratings and independent data on the captive and alternative risk
transfer insurance market, please visit www.ambest.com/captive.
This press release relates to Credit Ratings that have been
published on A.M. 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 A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20170327006115/en/
A.M. BestFred Eslami, +1-908-439-2200, ext.
5406Senior Financial
Analystfred.eslami@ambest.comorGary A. Davis,
+1-908-439-2200, ext.
5665Directorgary.davis@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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