A.M. Best Assigns Ratings to Assured Guaranty Re Overseas, Ltd.

OLDWICK, N.J.--()--A.M. Best has assigned a financial strength rating of A+ (Superior) and an issuer credit rating of “aa” to Assured Guaranty Re Overseas, Ltd. (AGRO) (Bermuda). The outlook assigned to both ratings is stable.

The ratings reflect AGRO’s strong risk-adjusted capitalization, experienced management with a proven track record, prudent investment strategy, payment obligation support from its indirect parent and disciplined approach to expanding into the property catastrophe transformer reinsurance, collateralized reinsurance and life financial reinsurance market segments. The ratings also recognize the company’s strong enterprise risk management framework and infrastructure. The ratings of AGRO also reflect its affiliation with Assured Guaranty Re Ltd. (AG Re), a wholly owned subsidiary of Assured Guaranty Ltd. (AGL). Affiliates of AGL also provide operational, underwriting and risk management support to AGRO.

AGRO’s risk-capitalization is expected to be maintained at an excellent level supported by low projected underwriting leverage; guarantee of the company’s payment obligations by its indirect parent, AG Re; and the benefits and support of a broader successful insurance franchise.

Partially offsetting factors relate to the current soft and competitive conditions within the property catastrophe reinsurance market, which may spill over to the property catastrophe transformer business and challenge the company’s business plan.

Key rating triggers that could result in positive rating actions would be AGRO exceeding its business plan (i.e., profitability, capitalization level, etc.). Negative rating actions could occur if AGRO fails to execute its business plan over the long term or experiences a dramatic decline in its risk-adjusted capitalization, unfavorable operating results or instability at the parent level.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • Understanding Universal BCAR
  • Understanding BCAR for U.S. Property/Casualty Insurers
  • Rating Reinsurance/Insurance Transformer Vehicles
  • Risk Management and the Rating Process for Insurance Companies
  • Rating Monoline Financial Guarantors in the Public Finance Sector
  • Rating Natural Catastrophe Bonds
  • Catastrophe Analysis in A.M. Best Ratings
  • Evaluating Non-Insurance Ultimate Parents
  • Rating Members of Insurance Groups
  • Insurance Holding Company and Debt Ratings
  • Rating Closed-Block Monetizations

This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Asha Attoh-Okine, 908-439-2200, ext. 5716
Managing Senior Financial Analyst,
Insurance-Linked Securities
asha.attoh-okine@ambest.com
or
Elmo W. Chin, 908-439-2200, ext. 5227
Assistant Vice President,
Insurance-Linked Securities
elmo.chin@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Asha Attoh-Okine, 908-439-2200, ext. 5716
Managing Senior Financial Analyst,
Insurance-Linked Securities
asha.attoh-okine@ambest.com
or
Elmo W. Chin, 908-439-2200, ext. 5227
Assistant Vice President,
Insurance-Linked Securities
elmo.chin@ambest.com
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, 908-439-2200, ext 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com