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Vantage Risk improved underwriting profit expected

Vantage Risk Ltd’s Bermuda office at Chesney House, Pitts Bay Road, Pembroke (File photograph)

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Vantage Risk Ltd (Bermuda) and its affiliates, Vantage Risk Specialty Insurance Company (Wilmington, DE) and Vantage Risk Assurance Company (Wilmington, DE), which do business as Vantage Group. The outlook of these Credit Ratings (ratings) is stable.

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

The ratings affirmation follows an active initial two years of operations for the group. Underwriting income was adversely impacted by elevated catastrophe losses in the group’s reinsurance operations for the second year in a row. However, AM Best expects projected combined ratios for 2022 to improve over 2021.

In response to the heightened volatility, the group has implemented a strategy to move property catastrophe business off its balance sheet, but continue offering it through their insurance-linked securities vehicles.

This strategy is expected to provide Vantage with accretive income while reducing volatility in operating results.

The group continues to expand its primary insurance operations after a slow start in 2021 due to various operational challenges.

As the group continues to execute on its business plans, the reinsurance portfolio will become relatively smaller than the primary portfolio and thus have less of an impact to the group’s bottom line.

AM Best will continue to monitor the group’s progression as it enters its third year of operation. AM Best anticipates that the group’s operating performance will begin to stabilise as its business plan is executed.

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Published January 20, 2023 at 7:11 am (Updated January 20, 2023 at 7:11 am)

Vantage Risk improved underwriting profit expected

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