A.M. Best Affirms Credit Ratings of Beazley’s Lloyd’s Syndicates, Beazley Re Designated Activity Company & Beazley Insura...
08 April 2017 - 1:42AM
Business Wire
A.M. Best has affirmed the Financial Strength Ratings
(FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) of “a+” of Lloyd’s Syndicate 2623,
Lloyd’s Syndicate 623, Lloyd’s Syndicate 3623 and
Lloyd’s Syndicate 3622 (the syndicates) (United Kingdom).
Concurrently, A.M. Best has affirmed the FSRs of A (Excellent) and
the Long-Term ICRs of “a” of Beazley Re Designated Activity
Company (Beazley Re) (Ireland) and Beazley Insurance
Company, Inc. (BICI) (Farmington, CT). The outlook of these
Credit Ratings (ratings) is stable.
Syndicates 2623, 623, 3623 and 3622 are managed by Beazley
Furlonge Limited, and their ratings reflect the financial strength
of the Lloyd’s market, which underpins the security of all
syndicates. In addition, syndicates 2623 and 623 benefit from a
track record of excellent operating performance and strong
positions in the Lloyd’s market. Syndicates 2623 and 623 underwrite
business at Lloyd’s in parallel, with their individual shares of
combined business split according to each syndicate’s portion of
overall combined capacity. The capital of syndicates 2623, 3623,
3622 is provided by Beazley plc (Beazley) [LSE: BEZ] via its
corporate member, whilst syndicate 623 is supported by third-party
capital. The excellent performance of syndicates 2623 and 623 is
demonstrated by a five-year average combined ratio of 83%
(2012-2016).
Syndicate 3623 writes accident and health business, and
reinsures Beazley’s U.S. admitted carrier, BICI. Syndicate 3622 is
a dedicated life syndicate, writing life business associated with
Syndicate 3623’s accident and health portfolio. The performance of
these two smaller syndicates historically has not matched that of
the larger Beazley syndicates. However, A.M. Best expects Syndicate
3623’s performance to improve over the medium term, as Beazley’s
admitted business in the United States attains scale, and remedial
actions in accident and health lines take effect.
Beazley Re reinsures 75% of the profit of Beazley’s Lloyd’s
corporate member after a deductible. Therefore, it shares in the
strong profile and combined profitability of syndicates 2623, 3623
and 3622. Beazley Re is viewed to be integrated and strategically
important to Beazley, reflecting its role as the group’s internal
reinsurer. In addition, Beazley Re is expected to obtain a license
to write third-party insurance business during 2017, which will
enable the group to offer non-Lloyd’s underwriting capacity in the
European Union in the future. The company’s risk-adjusted
capitalisation is supportive of the ratings.
BICI’s role as an expanding admitted U.S. carrier is
strategically important to Beazley Re and to the Beazley group.
A.M. Best expects BICI’s importance to increase over the medium
term, as the company’s premium and earnings base become more
material to the overall group.
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/20170407005495/en/
A.M. BestMyles Gould, +44 20 7397 0267Senior Financial
Analystmyles.gould@ambest.comorEdin Imsirovic,
+1-908-439-2200, ext. 5740Senior Financial
Analystedin.imsirovic@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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