Moody’s Ratings has upgraded Africa Specialty Risks’ insurance financial strength rating to A3 from Baa1.

The developing markets-focused re/insurance group — licensed as a Class 3A insurer in Bermuda — has a stable outlook.

Mikir Shah, chief executive, said the upgrade recognises the strength of the firm’s underwriting, its growing relevance in developing markets and the strong capital foundation supporting the next stage of its expansion.

“As we broaden our reach across new developing markets, our focus remains on disciplined underwriting and responsible capital management,” Mr Shah said. “This is strengthened by our new lead investor, Vitruvian Partners, who will support our strategy to fulfil unmet insurance needs in developing markets.”

Caroline Hilton, chief strategy officer said: “Following on from our A- rating from Fitch last month, this upgrade by Moody’s recognises the strength of the platform we have built, combining local expertise with access to high- quality global capital.”

Ms Hilton said ASR is now the second largest African-focused reinsurer, adding that she looked forward to the continued expansion of their unique platform into Asia, Latin America and other developing markets.

Moody’s has also recognised ASR Re’s increasing relevance and market position in Africa’s corporate and speciality insurance market, its improved diversification and its consistently strong underwriting performance.

ASR said the rating was supported by the broad pool of high-quality partners on its binder panel, including its own Lloyd’s syndicate.

Moody’s said the stable outlook reflected its expectation that ASR Re will maintain strong underwriting performance, strong capitalisation and good asset quality while continuing to expand its franchise and geographic footprint in a disciplined manner.