AM Best has assigned a preliminary credit assessment to Beazley Bermuda Insurance with a financial strength assessment of A pca (Excellent) and a long-term issuer credit assessment of “a+” pca (Excellent).

The outlook assigned to the PCA is stable.

London-based specialist insurer Beazley’s chief executive Adrian Cox announced he had earmarked $500 million for a new Bermuda office back in November.

It is expected to be fully operational later this year.

AM Best said the PCA reflects BBIL’s balance sheet strength, which it assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The PCA also factors in lift from BBIL’s ultimate parent, Beazley, reflecting the strategic importance of BBIL to the group.

AM Best said BBIL’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to be at the strongest level, as measured by AM Best’s capital adequacy ratio, as well as the understanding that BBIL will follow Beazley’s reserving and investment strategy.

BBIL’s risk-adjusted capitalisation will be supported by a large capital base — $531 million at the start of 2026.

The credit ratings agency expects BBIL to achieve an adequate operating performance assessment over the medium term, supported by profitable, albeit potentially somewhat volatile, underwriting results despite the softening pricing environment.

Investment income is expected to contribute meaningfully to BBIL’s overall earnings, particularly in the initial years of business.

“Beazley has a well-established profile, with a strong franchise as an internationally recognised insurance group operating principally at Lloyd’s,” AM Best said. “BBIL will enable the group to widen its footprint and gain access to Bermuda’s reinsurance market.”

The company’s portfolio is expected to complement that of Beazley and provide additional diversification over the long term.