Somerset Re outlook 'positive' on balance sheet strength
AM Best has revised Bermuda-based Somerset Reinsurance’s outlook to positive from stable and affirmed its financial strength rating of A- (excellent).
The ratings agency said it expects Somerset Re’s balance sheet strength will continue to improve, with its risk-adjusted capitalisation expected to remain at the strongest level.
AM Best assesses Somerset Re’s balance sheet strength as "very strong", operating performance as adequate, neutral business profile and appropriate enterprise risk management (ERM).
Somerset Re’s liquidity is assessed as more than adequate to fund anticipated short-term obligations of the current blocks of business on its balance sheet.
AM Best noted that the reinsurer has enhanced its position in the markets it operates in, having executed several reinsurance agreements with known rated insurers.
“Experience-related metrics are showing strong evidence of prudent pricing and investment management discipline,” it concluded.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
