A.M. Best Europe – Rating Services Limited has assigned a financial strength rating of ‘A’ (Excellent) and an issuer credit rating (ICR) of “a” to Catlin Re Switzerland Ltd, the newly formed wholly owned subsidiary of Bermuda-based Catlin Group Limited (CGL), the ultimate parent company of the Catlin group.
The ratings of Catlin Re “reflect its strategic importance to the Catlin group as the provider of significant intra-group reinsurance protection and as the group’s platform for expansion of its reinsurance business in Europe,” Best explained.
“The company will underwrite European property and specialty business, as well as a portfolio of global trade credit surety and political reinsurance. In addition, reinsurance of other group subsidiaries will be underwritten through the company’s Bermuda-based branch office from 2011.
“This internal business is currently written by Catlin Re’s immediate parent, Catlin Insurance Company Limited (Bermuda), and is expected to account for approximately 95 percent of the company’s gross premium income during its first year of operation.”
Best added that it “expects Catlin Re’s stand-alone risk-adjusted capitalization to be maintained at a strong level based on growth and performance forecasts. The company’s initial capital of approximately $1.1 billion represents over a third of the group’s consolidated shareholders’ funds ($3.2 billion as at June 2010).”
Source: A.M. Best
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