Bermuda-based Citadel Reinsurance Company Ltd has been assigned a financial strength rating of A- (excellent) and an issuer credit rating of “a-”, both with stable outlooks, by AM Best Co.

The ratings reflect Citadel Re’s “strong balance sheet, excellent liquidity and its diversified operating strategy”, said Best. The ratings also “recognise the company’s experienced management team, niche and specialised markets, favourable operating results and its conservative underwriting and reserving practices.

“In addition to its traditional reinsurance book of business, Citadel Re’s unique business plan includes exit strategies that provide both capital relief and liquidity easing for reinsurers and captive companies by transferring liabilities to Citadel Re, allowing for the release of assets and collateral that had been required by the fronting reinsurer.”