OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa” of Assured Guaranty Re Overseas Ltd. (AGRO) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect AGRO’s strong risk-adjusted capitalization, experienced management with a proven track record, prudent investment strategy and payment obligation support from its indirect parent. 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), its ultimate parent. Affiliates of AGL also provide operational, underwriting and risk management support to AGRO.
A.M. Best expects AGRO’s risk-adjusted capitalization to be maintained at an excellent level, supported by low projected underwriting leverage, the guarantee of the company’s payment obligations by its indirect parent, AG Re, and the benefits and support of a broader successful insurance franchise of AGL.
Partially offsetting rating factors include a reduction in net income and net premiums earned during the past few years. In addition, the typical challenges posed by expanding into new targeted lines of business could have a negative impact on the execution of the company’s business plan.
A rating trigger that could result in a positive rating action is AGRO meeting or exceeding its business plan, including profitability and risk-adjusted capitalization levels. Negative rating action could occur if AGRO fails to execute its business plan over the long term or if it experiences a dramatic decline in its risk-adjusted capitalization, unfavorable operating results or instability at the parent level.
This press release relates to Credit Ratings 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 see A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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