Graphique Historique de l'Action
1 an : De Oct 2018 à Oct 2019
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a+” of Blue Whale
Re Ltd. (Blue Whale) (Burlington, VT). The outlook of these Credit
Ratings (ratings) is stable.
The ratings reflect Blue Whale’s balance sheet strength, which AM Best
categorizes as very strong, as well as its strong operating performance,
neutral business profile and appropriate enterprise risk management
The ratings also reflect Blue Whale’s strategic position as the captive
insurer for Pfizer Inc. (Pfizer) [NYSE: PFE], a leading global
pharmaceutical company. As Blue Whale insures or reinsures Pfizer’s
global property exposures, it plays an important role in Pfizer’s
overall ERM and assumes a critical role in protecting the Pfizer
Blue Whale’s capitalization is very strong, albeit reliant on its
parent. It operates at conservative underwriting leverage levels;
however, it provides coverages with extremely large limits, and its
gross exposures per loss occurrence are elevated. Although Blue Whale
benefits from reinsurance protection, its net retentions remain very
substantial. Reinsurance is provided by a large panel of reinsurers, and
Blue Whale relies on significant capacity to support its obligations.
Therefore, it depends heavily on reinsurance. Nevertheless, AM Best
recognizes the quality of the reinsurers, and the substantial financial
resources and support available to the captive as part of the Pfizer
Due to the nature of the relationship between Blue Whale and Pfizer,
changes in Pfizer’s credit risk can have certain impact on Blue Whale’s
ratings, as it is dependent on Pfizer’s ability to support its credit
risk profile, competitiveness and risk management. The captive continues
to be an integral component of Pfizer’s risk management platform. AM
Best’s view of third-party credit ratings and Pfizer’s market-based
credit risk measures indicate stability, resulting in Blue Whale’s
outlooks being stable.
The company’s results rebounded in 2018, as the captive recovered from
the impact of Hurricane Maria, which occurred in late 2017. Resolution
of all Hurricane Maria-related claims is expected by mid-2019, after
which time reserves are expected to return to historical levels.
Positive rating actions could occur if the company’s operating
performance improves to outperform similarly rated peers with supportive
risk-adjusted capitalization. Negative rating action could occur if
underwriting performance weakens and negatively impacts risk-adjusted
capitalization over time, or if there is a material shift in risk
profile that could potentially undermine the stability and profitability
of the company. In addition, negative rating action could occur if the
parent’s credit profile materially deteriorates.
AM Best remains the leading rating agency of alternative risk
transfer entities, with more than 200 such vehicles rated in the United
States and throughout the world. For current Best’s Credit Ratings and
independent data on the captive and alternative risk transfer insurance
market, please visit www.ambest.com/captive.
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
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