Fontana Holdings LP has received a credit rating of “bbb+” (Good) from AM Best, with a stable outlook. At the same time, AM Best affirmed an “A” (Excellent) financial strength rating for the Bermudian-based Fontana’s two reinsurance companies, Fontana Reinsurance Ltd and Fontana Reinsurance US Ltd, also based in Bermuda.

The ratings reflect what AM Best describes as Fontana’s “strong” balance sheet, “adequate” performance, a “neutral” business profile and “very strong” risk management practices.

Fontana Holdings is a joint venture launched in 2022 by RenaissanceRe Holdings Ltd, along with third-party investors. Fontana Re and its US affiliate are fully owned by the partnership and were established in RenaissanceRe’s push into the casualty and speciality reinsurance market, according to AM Best.

The company began operations in April 2022 with $475 million in capital and has grown by taking on a portion of RenaissanceRe’s business. It is managed by Renaissance Underwriting Managers Ltd and included in RenaissanceRe’s overall financial reporting.

AM Best said Fontana has maintained solid performance since its launch, even though it is still a relatively young company. The agency expects it to continue growing and generating profits, supported by its strong connection to RenaissanceRe and its team’s deep expertise in underwriting and risk management.

As Fontana builds scale, AM Best noted, it is likely to generate stronger profits while keeping its financial strength intact.