A.M. Best Affirms Credit Ratings of Harrington Re Ltd. and Harrington Reinsurance Holdings Limited

OLDWICK, N.J.--()--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 Harrington Re Ltd. (Harrington). A.M. Best also has affirmed the Long-Term ICR of “bbb-” of Harrington Reinsurance Holdings Limited. Both companies are domiciled in Bermuda. The outlook of these Credit Ratings (ratings) is stable.

Harrington, which commenced operations in June 2016, is sponsored by AXIS Capital Holdings Limited (AXIS) and The Blackstone Group L.P. (Blackstone). The lead operating company of AXIS, AXIS Specialty Limited has an FSR of A+ (Superior) and a Long-Term ICR of “aa-” from A.M. Best. Blackstone was founded in 1985 and is a leading investment manager across a wide array of alternative asset strategies. Harrington seeks to leverage the strengths of both organizations’ expertise.

The ratings reflect Harrington’s strong risk-adjusted capitalization, the credibility and capability of management, and the strong qualitative and quantitative attributes of the sponsors. Despite the significant challenges in the reinsurance sector, Harrington is working toward building a diversified, multi-line reinsurance book of business with strict limitations on property catastrophe risk. The investment portfolio is structured to have ample liquidity and diversification by asset class, while managing drawdown risk and seeking to provide strong absolute returns.

Negative rating actions could occur if Harrington is unsuccessful in executing its business plans over the long term, experiences outsized investment or catastrophe loss relative to peers or A.M. Best’s expectation, has strained risk-adjusted capitalization, or loses key personnel.

Positive rating actions could occur if the company meets or exceeds its business plans over the long term, while demonstrating sustainable operating results and maintaining strong risk-adjusted capitalization.

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.

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

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Greg Reisner, +1-908-439-2200, ext. 5224
Director
greg.reisner@ambest.com
or
Robert DeRose, +1-908-439-2200, ext. 5453
Senior Director
robert.derose@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Greg Reisner, +1-908-439-2200, ext. 5224
Director
greg.reisner@ambest.com
or
Robert DeRose, +1-908-439-2200, ext. 5453
Senior Director
robert.derose@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com