Latest news with #CreditRating
Yahoo
16 hours ago
- Business
- Yahoo
AM Best Downgrades Issuer Credit Rating of Cowen Reinsurance S.A.; Maintains Under Review With Negative Implications Status on Credit Ratings
AMSTERDAM, July 18, 2025--(BUSINESS WIRE)--AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "bbb" (Good) from "bbb+" (Good) and affirmed the Financial Strength Rating of B++ (Good) of Cowen Reinsurance S.A. (Cowen Re) (Luxembourg). In addition, AM Best has maintained the under review with negative implications status for these Credit Ratings (ratings). These ratings reflect Cowen Re's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). The Long-Term ICR downgrade reflects the poor track record of Cowen Re's operating performance. Since its start of operations in 2016, Cowen Re has reported cumulative technical losses, which have been largely offset by investment gains. Cowen Re's five-year weighted average combined ratio stood at 122.9% (as calculated by AM Best). Furthermore, during its ongoing sale process that started after its acquisition by Toronto-Dominion Bank (TD Bank) in March 2023, Cowen Re is only renewing existing programmes and is not underwriting any new business, putting the company under greater expense strain. Cowen Re's ratings were initially placed under review on June 15, 2023. This was due to the uncertainty regarding Cowen Re's future ownership, given that AM Best does not expect the company to form a part of TD Bank's long-term plans. Additionally, the negative implications status also reflects the uncertainty regarding the company's strategic plans and the negative trend on the company's business profile as Cowen Re is unable to underwrite new business. Although Cowen Re reported a pre-tax profit (before movements in equalisation reserves) of USD 9.95 million, mainly driven by investment income, technical performance remained under pressure, as reflected by a combined ratio of 118.4% at year-end 2024 (as calculated by AM Best). The resolution of TD Bank's plans for the company has taken longer than AM Best originally expected. The ratings will remain under review with negative implications until AM Best has gained certainty regarding the company's long-term ownership and business plans. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Valentine Gu, AAG Associate Financial Analyst +31 20 308 5421 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Jose Berenguer, CFA Associate Director, Analytics +31 20 808 2276 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
a day ago
- Business
- Yahoo
AM Best Downgrades Credit Ratings of Berking Re Limited; Maintains Under Review With Negative Implications Status
HONG KONG, July 18, 2025--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to C+ (Marginal) from B- (Fair) and the Long-Term Issuer Credit Rating to "b-" (Marginal) from "bb-" (Fair) of Berking Re Limited (Berking Re) (Bermuda). Concurrently, AM Best has maintained the under review with negative implications status for these Credit Ratings (ratings). The ratings reflect Berking Re's balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. The ratings also consider the weakened credit fundamentals and heightened risk in replenishing financial resources, as well as the execution of business and capital plans by the parent company, PFY Health Technology Co., Ltd (PFY Cayman or PFY Group), which has resulted in a drag on Berking Re's ratings. The rating downgrades reflect AM Best's view that Berking Re is exposed to a heightened level of potential negative contagion risk from PFY Cayman as the group continues to experience adverse financial and business developments, as well as weakened financial flexibility in the current capital structure in recent years. The parent group has a short operational history, while its capital position is limited and deteriorating due to sustained operating losses since establishment. Notwithstanding, AM Best expects that insurance regulatory oversight can partly mitigate potential undue influence from the parent on Berking Re's capital and assets. The rating downgrades also reflect the revised assessment on Berking Re's operating performance to marginal from adequate, due to lack of clear visibility in the company's latest financial performance, resulting from delays in business reporting. AM Best expects it will take a longer period of time for the company to achieve break-even results as it builds economies of scale to stabilise underwriting margins and improve cost efficiency. The under review with negative implication status reflects AM Best's view on the uncertainty regarding the capital position of Berking Re. As mentioned, the company continues to face delays in compiling financial information for written business. As a result, the audited financial statements for the financial year 2024 and the latest financial performance in 2025 are not yet available, adding to the uncertainties on the company's capital position. Berking Re has disclosed that PFY Cayman is currently in the process of raising funds. In the event that PFY Cayman fails to execute its capital plan successfully, without alternative contingent capital support or revision of business plans, AM Best expects Berking Re's risk-adjusted capitalisation to exhibit a deteriorating trend that may create negative pressure on its current balance sheet strength assessment. The ratings will remain under review with negative implications pending more visibility into Berking Re's up-to-date financial information, as well as the execution of PFY Cayman's capital plans in the near future. AM Best also will continue to monitor the situation and provide updates as conditions warrant. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Stephanie Mi Senior Financial Analyst +852 2827 3402 James Chan Director, Analytics +852 2827 3418 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of AVLA Seguros de Crédito y Garantía S.A.
MEXICO CITY, July 17, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb+" (Good) of AVLA Seguros de Crédito y Garantía S.A. (AVLA Chile) (Chile). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect AVLA Chile's balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management. The ratings also recognize AVLA Chile's affiliation and strategic importance to its ultimate parent, AVLA Bermuda Holding Corp Ltd. (ABHC), a financial holding company domiciled in Bermuda, engaged in insurance operations in Chile, Peru, Mexico, Brazil and the United States. As of May 2025, ABHC had equity of USD 89 million. AVLA Chile began operations in Chile in 2013 as AVALCHILE, before changing its name to AVLA Chile in 2016. AVLA Chile specializes in credit insurance and surety; it ranks first in Chile in surety and within the top three in credit insurance, based on market share. AM Best assesses AVLA Chile's business profile as neutral. The company has redefined its risk appetite successfully through adverse market conditions. In AM Best's view, management's capabilities remain key to adjusting its product offerings amid these evolving market conditions. During the past two years, AVLA Chile's operating performance has been limited by its underwriting results and has followed a downward trend that as of December 2024, resulted in a USD 1.4 million loss. The company's results were impacted by an increase in claims from financial guarantees, which could not be offset by revenue from fees for credit studies, tied to credit insurance policies, in contrast to 2023. The company has taken measures to correct this trend, and as of March 2025, combined ratio has returned to premium sufficiency levels. AM Best will continue to monitor AVLA Chile's results and underwriting quality. AVLA Chile's balance sheet strength assessment is strong given its solid capital base for the risks it undertakes. The strong balance sheet strength assessment recognizes the company's reinsurance dependence, while also taking into account the excellent security level of its reinsurance panel. AVLA Chile benefits from belonging to the AVLA Group, as reflected by the willingness and proven history of capital contributions made by its shareholders to support growth, with the latest one taking place in 2024, equivalent to USD 4.8 million. Positive rating actions could take place if AVLA Chile can show a stable upward trend in risk-adjusted capitalization, underpinned by consistently positive bottom-line results. Positive rating actions also could take place if AVLA Chile is able to demonstrate a consistent upward trend in its bottom-line results, that compares favorably with the adequate assessment. Negative rating actions could occur if in AM Best's opinion, the strategic importance of AVLA Chile to its group decreased significantly, or if the AVLA Group's consolidated financial strength deteriorated to a point no longer supportive of the current ratings. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Inger Rodriguez Financial Analyst +52 55 1102 2720, ext. 108 Alfonso Novelo Senior Director, Analytics +52 55 1102 2720, ext. 107 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of AVLA Re Ltd.
MEXICO CITY, July 17, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb+" (Good) of AVLA Re Ltd. (AVLA Re) (Bermuda). The outlook of these Credit Ratings (ratings) is stable. The ratings of AVLA Re reflect its 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 (ERM). AVLA Re is ultimately owned by AVLA Bermuda Holding Corp Ltd. (ABHC), a financial holding company domiciled in Bermuda that is engaged in insurance operations in Chile, Peru, Mexico, Brazil and the United States. As of May 2025, ABHC had equity of USD 89 million. AVLA Re is considered a new company as it began operations in January 2022, under a Class 3A insurer license in Bermuda. The company currently reinsures business from other ABHC subsidiaries in Chile, Peru, Mexico and Brazil, and plans to reinsure premiums from third parties in the medium to long term. AVLA Re's business profile is considered limited, given the small size of the company and its high degree of competition. The balance sheet strength of the company is considered very strong. AVLA Re has received two capital infusions from its holding company since its creation. AM Best will monitor any capital flows to and from the company to continue assessing the strength of its balance sheet. The company's operating performance is considered adequate and in line with its position as a recently formed company. AVLA Re's premium growth has been prudent, with controlled increments in businesses from subsidiaries in the group. The company's claims experience has been in line with organization's expectations and AVLA Re was able to post positive bottom-line results of USD 5.8 million in its third year of operations. AM Best will continue to monitor the underwriting quality and operating metrics of this building block. AVLA Re's ERM assessment is considered appropriate for its risk appetite and strongly supported by ABHC's back office. AVLA Re benefits from capital support from ABHC, as well as synergies and brand recognition from the group, with which AVLA Re shares experienced management. The stable outlooks reflect AM Best's expectations that AVLA Re will meet its business objectives in terms of operating metrics and capitalization. Negative rating actions could occur if AVLA Re's capital base erodes due to significant capital base deterioration or sustained unfavorable operating results. Negative rating actions could also occur should AVLA Re's importance to the group's strategy lessens in AM Best's opinion. Positive rating actions could occur in the medium term, driven by a consistent, upward trend in operating results, which in turn, strengthens its capital base. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Inger Rodriguez Financial Analyst +52 55 1102 2720, ext. 108 Alfonso Novelo Senior Director, Analytics +52 55 1102 2720, ext. 107 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
AM Best Upgrades Credit Ratings of SIAT-Società Italiana Assicurazioni e Riassicurazioni p.A.
AMSTERDAM, July 17, 2025--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "a" (Excellent) from "a-" (Excellent) of SIAT-Società Italiana Assicurazioni e Riassicurazioni p.A. (SIAT) (Italy), a subsidiary of Unipol Assicurazioni S.p.A. (Unipol). The outlook of these Credit Ratings (ratings) is stable. The upgrades follow the improvement in the financial strength of SIAT's ultimate parent, Unipol, which was assigned an FSR of A (Excellent) and a Long-Term ICR of "a" (Excellent) on 17 July 2025. The ratings reflect SIAT'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 (ERM). The ratings factor in SIAT's importance to, and integration into the operations of Unipol, as well as AM Best's expectation that Unipol would provide prompt and sufficient financial support to its subsidiary, should it be needed. SIAT's Best's Capital Adequacy Ratio (BCAR) assessment was at the very strong level at year-end 2024, and AM Best expects it to be maintained, at least, at that very strong level over the medium term. SIAT maintains a strong liquidity profile, with liquid investments accounting for approximately 151% of net technical liabilities at year-end 2024. Partially offsetting factors to the balance sheet strength include the company's investment concentration in Italian government bonds and its dependence on reinsurance to write high-value risks. SIAT has a track record of adequate operating performance, supported by good underwriting profitability, with volatility contained by the company's effective reinsurance programme. In 2024, pre-tax profits amounted to EUR 11.1 million (adjusted by AM Best for extraordinary income and expenses), with the combined ratio standing at 84.4% (as calculated by AM Best). SIAT's five-year average combined ratio stood at 87.9% (2020-2024) (as calculated by AM Best). AM Best expects SIAT to continue to report adequate performance, supported by selective underwriting. SIAT has an established reputation as a niche insurer in the marine hull and cargo segments, in which it ranks among the leading players in Italy. In addition, the company's business profile benefits from its reciprocal outsourcing agreements with Unipol. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Andrea PortaSenior Financial Analyst +31 20 808 1700 Jose Berenguer Associate Director, Analytics +31 20 808 2276 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
