Credit Suisse's Kelvin Re and Humboldt Re to cease underwriting
Credit Suisse-backed, Guernsey domiciled reinsurance carriers Kelvin Re and Humboldt Re have decided to cease underwriting new business and pursue strategic options for a "controlled exit" for their investors.
An announcement on Humboldt Re's website stated that it will stop underwriting new business as of January 1 2021 and is currently reviewing options for the ultimate shareholder to unwind its investment.
Meanwhile, Kelvin Re, a short tail property and specialty lines reinsurer, announced that following its shareholder and board of directors meeting earlier this month, it has decided to not to underwrite any further business and pursue a controlled exit.
Ratings agency AM Best has placed the A- financial strength ratings of both Kelvin Re and Humboldt Re under review with negative implications, reflecting "uncertainty over the company’s prospective balance sheet strength and future business plans".
AM Best, however, noted that it does not expect their rating fundamentals of both reinsurers to deteriorate significantly.
The agency intends to conduct detailed discussions with Kelvin Re and Humboldt Re regarding their revised business plans and prospective risk-adjusted capitalisation. Based on its analysis, AM Best may consider removing the ratings from under review.
