Fitch Ratings has upgraded Beazley’s insurer financial strength rating of Beazley Insurance to AA from A+, following the company’s acquisition by Zurich Insurance Group in a deal worth more than $10 billion.

The ratings agency also also upgraded the long-term Issuer Default Ratings (IDRs) of the Dublin subsidiary and Beazley plc to AA- from A. The outlooks for all ratings are stable.

Fitch also removed the rating from rating watch positive, and confirmed that the outlooks are stable.

The combination has created one of the world’s largest specialty insurance businesses, and Fitch cites Beazley’s strategic importance to Zurich as “very important”.

Beazley is expanding its presence in Bermuda, where it has set up a platform to support alternative risk transfer, cyber ILS, captives, property treaty reinsurance and other specialty business.

Beazley said last year that it had earmarked $500 million for its Bermuda operation and expected the platform to generate $400 million in premium by 2030. About half of that target was expected to come from alternative risk-transfer activity.

“The acquisition supports ZIG’s strategic objective of expanding its specialty insurance franchise,” the ratings agency stated.

“Fitch expects Beazley to continue operating as ZIG’s specialty business platform while retaining its brand and underwriting culture. This should support continuity in underwriting discipline, client relationships and the retention of key personnel.”

Fitch said Beazley’s standalone credit assessment reflected its strong company profile, very strong financial performance and capitalisation, and conservative approach to reserving and investments.

The agency expects the combined specialty platform to generate business volumes of around $15 billion.