AM Best assigns 777 Re Excellent ratings
AM Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent) to Bermuda-based 777 Re Ltd.
The outlook assigned to these credit ratings is stable.
The ratings reflect 777 Re’s balance sheet strength, which AM Best assesses as very strong as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best said the balance sheet assessment of very strong considers the capital support of the parent as well as being based on capital capacity that meets AM Best’s guidelines for newly formed companies and which is expected to support at least very strong risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio through the five-year start-up period.
The agency said it has assessed 777 Re’s operating performance as adequate based on the company’s five-year business plan and takes into consideration the inherent level of execution and implementation risk for a newly formed entity.
The company’s business profile has been assessed as neutral given its plan to acquire both active and run-off blocks of life insurance and annuity business in the United States and United Kingdom.
AM Best said 777 Re’s ERM has been assessed as appropriate as the company has a comprehensive framework in place.
Negative rating actions will occur if risk-adjusted capital is insufficient or if actual operating performance results fall significantly outside the initial projections, the agency said.