LONDON--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Kelvin Re Limited (Kelvin Re) (Guernsey). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Kelvin Re’s strong risk-adjusted capitalisation, an experienced management team that has produced positive earnings since inception in 2014 and a solid risk management framework. Offsetting rating factors include the company’s underwriting concentration in natural catastrophe reinsurance, the high level of dependency on Credit Suisse’s Insurance-Linked Strategies team, and the increased investment risk arising from a non-traditional investment strategy, with approximately 42% of investments allocated to blue-chip hedge funds. A.M. Best expects the company’s risk-adjusted capitalisation to remain at a strong level in 2017.
The rating action review was driven by regulatory requirements pursuant to an Employment Related Look Back Review because a former A.M. Best rating analyst participated in previous rating actions related to their current employer. The rating actions referenced are the assignment of the FSR of A- (Excellent) and the Long-Term ICR of “a-” with a stable outlook of Kelvin Re, published on Nov. 10, 2014, and the affirmation of these ratings on Nov. 13, 2015, and on Nov. 16, 2016. The result of the Employment Related Look Back Review was that the ratings were not influenced by a conflict of interest.
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