Triangle Life Insurance Co Ltd has received a preliminary credit assessment from AM Best, marking another milestone for the Bermudian-based insurer as it grows its presence in the high-net-worth life insurance market.

The ratings agency assigned the company a preliminary Financial Strength Assessment of A- (Excellent) and a Long-Term Issuer Credit Assessment of “a-” (Excellent), both with stable outlooks.

AM Best said the assessment reflected Triangle Life's “very strong” balance sheet, adequate operating performance, neutral business profile and appropriate risk management.

The agency said it expected the company to keep its risk-adjusted capitalisation comfortably above the necessary threshold over five years, supported by the capital the company raised to fund its growth. The agency also expects Triangle Life to keep its surplus levels well above Bermuda's solvency requirements.

AM Best noted that the insurer relies on reinsurance during the early stages of its development but said the programme was well-structured and backed by reinsurers with excellent credit quality.

Triangle Life is well positioned to benefit from opportunities in the global HNW life insurance market, although AM Best warned that entrance into that market is risky. However, the company's digital platform and lack of legacy systems should give it a competitive advantage.

The company’s governance and risk management framework is appropriate for its current stage of development and those capabilities should grow alongside the business, according to AM Best,

Triangle Life was established in 2020 to serve HNW individuals around the world, offering life insurance products for wealth transfer, estate planning and business succession.

Speaking to The Royal Gazette last year, Niall O'Hare, chief executive, said the company had been built exclusively for the HNW market rather than adapting products designed for mass-market customers.

“We are the only one solely high-net-worth-focused,” he said.

Mr O’Hare also said Bermuda's reputation as a well-regulated insurance jurisdiction had been central to the company's decision to establish itself on the island.

“We’ve made very important promises to clients. So, having a really strong regulator with a great reputation is critical. Bermuda has that,” he said.

Triangle Life has spent the past several years building its business, raising growth capital from investors including Aspida Holdings and BroadRiver Asset Management, expanding its underwriting team and launching its flagship Triangle Global Harmony indexed universal life product.

The Gazette has reached out to Triangle Life to discuss Friday’s preliminary credit assessment.