A.M. Best Co. has assigned an initial financial strength rating of A (Excellent) to Converium Insurance (UK) Limited (Converium UK). The rating outlook is stable.
The rating is based on Converium UK’s excellent risk-based capitalization, well-established underwriting portfolio and strategic importance to Converium Ltd, Zurich, which currently has a rating of A (Excellent) with a stable outlook. Partially offsetting factors are its limited diversification and expected volatility in its gross underwriting performance.
Converium UK was formed this year to underwrite business for three companies that trade as managing general agents or service companies—Medical Defence Union Services Limited, SATEC S.R.L. and Global Aerospace Underwriting Managers Ltd.
The Converium group has substantial shareholdings in each of these companies. Converium UK shares common branding with its parent and benefits from a substantial quota share from the Bermudian branch of Converium Ltd. The classes of business written (UK medical malpractice, aviation and space insurance) are all areas that the Converium group is targeting for growth as part of its core strategy.
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