AM Best

AM Best keeps Watford on review despite Arch takeover

AM Best has kept its A- financial strength rating for Watford Re under review with negative implications despite Arch recently completing the acquisition of the Bermuda-based reinsurer.

Vantage’s $100mn-capitalised E&S company gets A- rating

AM Best has assigned an A- (Excellent) financial strength rating to Vantage Risk Specialty Insurance Company, which was acquired to write excess and surplus lines business in the US for the Greg Hendrick-led Vantage Group Holdings.

AM Best: Trade credit losses will be manageable following expiration of backstops

European trade credit insurers’ results were better than expected in 2020 given the impact of the pandemic while losses from insolvencies will be manageable for the market despite the expiration of government backstops, AM Best has said in a new report.

AM Best: Cannabis insurance capacity limited while federal laws remain a roadblock

The cannabis insurance market in the US is forecast for growth but federal law changes are needed for admitted carriers to join the excess and surplus lines market in providing cover, AM Best has stated in a new report.

AM Best downgrades Safepoint to C++ and withdraws rating

AM Best has downgraded Florida carrier Safepoint Insurance Company’s financial strength rating to C++ (Marginal) from B- (Fair) as it pointed to capital erosion at its parent, and withdrawn the rating at the company’s request.

Other liability occurrence DPW overtook workers’ comp in 2020

The 7.5 percent growth in US other liability – occurrence direct premiums written (DPW) last year meant the segment overtook workers’ compensation’s top line while DPW in the other liability – claims made segment spiked 18.2 percent, according to an AM Best analysis.

AM Best: MPL’s immediate profitability prospects at threat

The medical professional liability (MPL) market’s profitability prospects are at threat, AM Best has warned, with growing telemedicine use and delayed or misdiagnosed non-pandemic related illnesses potentially leading to a further increase in claims.

US commercial property underwriters lost $23bn in the last 4 years

Although there is some evidence of easing pricing pressures in US commercial property, the latest annual filings data compiled by AM Best reveals the extent of recent pain for carriers, with cumulative underwriting losses of more than $23bn across the last four years for the business line.

EMIC ratings unchanged after vote to demutualise

Canadian carrier Economical Mutual Insurance Company (EMIC)’s A- financial strength rating and “a-“ long-term issuer credit rating from AM Best remain unchanged following the organisation’s recent near-unanimous vote in favour of demutualisation.

AM Best: Competition driving consolidation among Europe’s mutual insurers

Regulatory and competitive pressures will continue to drive consolidation among European mutuals, which have sought to take advantage of legal consolidation tools available on the continent in an attempt to gain scale, according to AM Best.

AM Best: Insurers “urgently need to reassess” cyber risk

AM Best has issued a stark warning to cyber insurers in a new report that outlines the “grim” prospects for the market as the increase in claims outpaces premium growth, with the ratings agency stressing a reassessment of cyber risk is needed.

Tencent-backed reinsurer FuSure receives A- from AM Best

Tencent Holdings-backed FuSure Reinsurance Company has been handed a financial strength rating (FSR) of A- by AM Best as the Hong Kong-based start-up gears up to begin underwriting health reinsurance business before diversifying into other lines that could include P&C.

AM Best: Florida insurers will struggle to maintain surplus levels despite policy cancellations

AM Best has suggested Florida carriers will find it a challenge to sustain their surplus levels – despite the property insurance reform passed last month in the Sunshine State and the recently approved cancellations of policies – while reinsurance rates are expected to continue to rise at the mid-year renewals with demand for multi-event protection a trend.

AM Best affirms A rating of LGT’s Lumen Re

Lumen Re, the Bermuda-based rated reinsurance platform of fund manager LGT ILS, has had its A (Excellent) financial strength rating affirmed by AM Best.

AM Best: MPL market facing one of its toughest periods in a decade

The US medical professional liability (MPL) market is facing one of its toughest periods in the past 10 years as it manages reduced demand, concerns over rate adequacy, diminishing reserve redundancies owing to rising loss cost trends and the impact of social inflation, while fears are mounting over a possible surge of Covid-19 related claims, according to AM Best.

Leadenhall backs new A rated Bermuda reinsurer Nectaris Re

ILS fund manager Leadenhall Capital Partners is backing a new Bermuda reinsurer to provide an alternative rated platform for its clients while also reducing the structural problems associated with trapped collateral.

Universal North America’s credit rating downgraded after volatile results

AM Best has downgraded Universal North America Insurance Company (UNAIC)’s long-term issuer credit rating (ICR) to “bbb” from “bbb+” and changed the outlook on its financial strength rating of B++ to negative from stable.

AM Best: Colonial Pipeline attack another “wake-up call” for cyber insurers

AM Best said that the cyber attack on US energy firm Colonial Pipeline highlights the interconnectedness of cyber risk and is another “wake-up call” for the cyber insurance market, which is battling claims increasing at a faster rate than premiums.

Reinsurance and auto among most innovative lines: AM Best

AM Best has noted that the pandemic accelerated insurers’ innovation efforts – with reinsurance, auto and health the most innovative lines – but the rating agency assesses a majority of rated units’ innovation capability as “moderate”.

AM Best: No changes to ratings of Mexico City Metro’s lead insurer GMX

AM Best has not made any changes to Grupo Mexicano de Seguros (GMX)’s ratings even though the carrier is facing possibly significant losses owing to its position as the lead insurer of Mexico City’s subway system.

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