OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to Fidelis Underwriting Limited (Fidelis UK) (United Kingdom). The outlook assigned to both ratings is stable.
The ratings of Fidelis UK are based on its strong risk-adjusted capital position as measured by Best’s Capital Adequacy Ratio (BCAR), its experienced management team and prudent business plan. Partially offsetting these positive factors is the start-up nature of the company, as well as the competitive market conditions and excess capacity in the (re)insurance marketplace that may challenge the execution of the business plan. Furthermore, the ratings recognize the support Fidelis UK receives from Fidelis Insurance Holdings Limited, its parent, and Fidelis Insurance Bermuda Limited, its affiliate.
The ratings are supported by an amount of capital that has met A.M. Best’s stringent requirements for newly formed companies. Fidelis UK will operate as a global specialty insurer and reinsurer.
Key rating factors that could result in positive rating actions would be Fidelis UK meeting or exceeding its business plan over the long term. A.M. Best could downgrade the ratings or revise the outlook if the company’s risk-adjusted capitalization declines, as measured by BCAR, its operating performance and risk profile deteriorate or if losses from claims or investments erode capital.
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.
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