OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Kuvare Life Re Ltd. (Kuvare Re) (Bermuda). Kuvare Re is a subsidiary of Kuvare UK Holdings Limited. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Kuvare Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Kuvare Re is a life and annuity reinsurer registered in Bermuda. The company focuses on providing underwriting and reinsurance solutions to the life and annuity insurance marketplace.
The ratings reflect Kuvare Re’s capitalization level, measured on absolute terms and risk-adjusted terms, including Best’s Capital Adequacy Ratio (BCAR). The company benefits from good quality of capital and asset/liability management capabilities. The bulk of its portfolio of assets is owned indirectly through reinsurance arrangements. The parent supports Kuvare Re by providing capital and does not have any material debt.
Kuvare Re plays mainly in the fixed deferred annuity space. It also assumes structured settlement liabilities. Transactions are lumpy by nature; top line and volatility trends are not yet observable, but the ability to write business and disciplined underwriting standards support its adequate operating performance. The company identifies its risks well and uses a robust defense ERM model.
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