AMSTERDAM--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Barents Reinsurance S.A. (Barents Re Lux) (Luxembourg) both with negative outlooks remain unchanged following the company’s announcement of its plans to relocate Barents Re Lux to the United Kingdom (UK).
The planned relocation involves establishing a new licensed reinsurance carrier domiciled in the UK, which will acquire all of the assets and liabilities of Barents Re Lux pursuant to a merger by absorption and a portfolio transfer. Management expects to complete the transactions by year-end 2020.
AM Best notes that Barents Re Lux benefits from ongoing implicit and explicit support from the parent, Barents Re Reinsurance Company, Inc., which will be enhanced further by the addition of a whole account stop-loss agreement to protect the company’s operating performance until the merger is complete.
AM Best believes that there is significant execution risk and will closely monitor the progression of the transactions.
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