A.M. Best Affirms Ratings of Arch Reinsurance Ltd. and Its Affiliates
15 Décembre 2009 - 4:12PM
Business Wire
A.M. Best Co. has affirmed the financial strength rating
(FSR) of A (Excellent) and issuer credit ratings (ICR) of “a+” of
Arch Reinsurance Ltd. (Arch) (Bermuda) and its reinsured
affiliates. A.M. Best also has affirmed the ICRs of “bbb” and
“bbb+” of Arch Capital Group (US) Inc. (New York, NY) and
Arch Capital Group Ltd (Bermuda) (NASDAQ: ACGL),
respectively. Concurrently, A.M. Best has affirmed all debt ratings
of Arch Capital Group Ltd. The outlook for all ratings is stable.
(See below for a detailed listing of the companies and
ratings.)
In addition, A.M. Best has withdrawn the FSR of A (Excellent)
and ICR of “a+” of Arch Indemnity Insurance Company (Omaha,
NE) and assigned an NR-5 (Not Formally Followed) to the FSR and an
“nr” to the ICR. These withdrawals are due to management’s decision
to postpone development of its business plans in this entity given
the current soft business conditions.
The affirmation of the ratings reflects Arch’s strong operating
performance, consistently excellent capitalization and demonstrated
risk management. Arch maintains a strong underwriting culture and
its overall underwriting performance continues to place it among
the leaders in the Bermuda market. Products are offered on a
worldwide basis in both primary and reinsurance markets for
property/casualty lines of business.
Arch places its operating emphasis on managing the underwriting
cycle and adapts its overall book of business to optimize profit
potential and limit exposure. Furthermore, Arch maintains a prudent
investment portfolio that does not place excessive risk on the
asset side of the balance sheet
Partially offsetting these positive rating attributes will be
Arch’s ability to maintain its underwriting discipline within its
chosen markets given the current soft market conditions. In
addition, as an underwriter of medium to long-tail casualty
businesses, Arch needs to be cognizant of exposure to potential
inflationary pressures.
The FSR of A (Excellent) and ICRs of “a+” has been affirmed for
Arch Reinsurance Ltd. and its following affiliates:
- Arch Reinsurance
Company
- Arch Insurance
Company
- Arch Specialty Insurance
Company
- Arch Excess & Surplus
Insurance Company
- Arch Insurance Company
(Europe) Ltd
The ICR of “bbb+” has been affirmed for Arch Capital Group
Ltd.
The ICR of “bbb” has been affirmed for Arch Capital Group
(US) Inc.
The following debt ratings have been affirmed:
Arch Capital Group Ltd—
-- “bbb+” on $300 million 7.35% senior unsecured notes, due 2034 --
“bbb-” on $200 million 8% non-cumulative preferred shares, Series
A, due 2011 -- “bbb-” on $125 million 7.875% non-cumulative
preferred shares, Series B
The following indicative shelf ratings have been affirmed for
debt securities available under the existing shelf
registration:
Arch Capital Group Ltd—
-- “bbb+” on senior debt -- “bbb” on subordinated debt -- “bbb-” on
preferred stock
Arch Capital Group (U.S.) Inc.
(guaranteed by Arch Capital Group Ltd)—
-- “bbb+” on senior debt -- “bbb” on subordinated debt -- “bbb-” on
preferred stock
For Best’s Credit Ratings, an overview of the rating process and
rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings,
including any additional methodologies and factors, which may have
been considered, can be found at
www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service
credit rating organization dedicated to serving the financial and
health care service industries, including insurance companies,
banks, hospitals and health care system providers. For more
information, visit www.ambest.com.
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