Canopius Re to decrease cat exposure – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

Canopius Re to decrease cat exposure

Ratings agency AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of Bermudian-based Canopius Reinsurance Limited and Canopius US Insurance Inc of Delaware.

Both entities are wholly owned subsidiaries of Jersey-domiciled Canopius Group Limited, the non-operating holding company of the Canopius group of companies.

The outlook of these credit ratings is stable.

The ratings reflect Canopius’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of Canopius US and Canopius Re reflect their strategic importance to and integration within the Canopius group, AM Best said.

Canopius’s balance sheet strength is underpinned by its very strong risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio.

The agency said significant capital contributions from new and existing shareholders in 2020 and early 2021 offset the impact of material Covid-19-related re/insurance claims and natural catastrophe losses.

Moderate internal capital generation is expected to support risk-adjusted capitalisation at the very strong level prospectively.

AM Best said Canopius has incurred underwriting losses in recent years, largely owing to the impact of natural catastrophe claims.

Results in 2020 also were significantly affected by Covid-19-related losses, driven by business interruption and event cancellation business lines.

However, overall performance is expected to show moderate improvement prospectively, as Canopius continues to decrease its exposure to natural catastrophe events. The group is expected to generate a profit this year.

AM Best said Canopius has a well-established business profile as a re/insurer in the Lloyd’s market, where it ranked seventh in terms of gross written premium in 2020.

In addition, the agency said, the group’s partnership with Samsung Fire & Marine Insurance Co Ltd, announced in 2019, is expected to support its expansion in the US and Asia-Pacific markets in the coming years.

AM Best: has affirmed the financial strength rating and the long-term issuer credit rating of Bermudian-based Canopius Re

You must be Registered or to post comment or to vote.

Published December 17, 2021 at 7:50 am (Updated December 17, 2021 at 7:50 am)

Canopius Re to decrease cat exposure

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon