AM Best assigns ratings for Convex subsidiaries
AM Best has assigned the financial strength rating of A- (Excellent) and a long-term issuer credit rating of a- (Excellent) to two overseas subsidiaries of Convex Group Limited (Bermuda).
Convex Europe SA (CES) (Luxembourg) and Convex Guernsey Limited (CGU) (Guernsey) are ultimately wholly owned subsidiaries of the Bermuda-based non-operating holding company of the group.
The outlook assigned to the credit ratings is positive.
They reflect Convex’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, limited business profile and appropriate enterprise risk management.
CES’s ratings factor in its strategic importance to and integration within the Convex group. CGU’s ratings consider the significant reinsurance support it receives from Convex Re Limited, an affiliated Bermuda-based company.
CES is domiciled in Luxembourg, which enables the group to directly service policyholders across the European economic area after the United Kingdom’s exit from the European Union.
The company received regulatory approval from the Commissariat aux Assurances, Luxembourg’s supervisory body for the insurance sector, on September 15.
CES’s United Kingdom branch is still awaiting Prudential Regulation Authority and Financial Conduct Authority approval. CES benefits from intragroup reinsurance support from Convex Re in the form of a 75 per cent quota share after third-party reinsurance.
CGU was incorporated on May 28 in Guernsey as a specialist insurance company with an initial focus on security risks. CGU benefits from significant explicit support from the Convex group in the form of a 100 per cent quota share reinsurance from Convex Re.