AM Best Affirms Credit Ratings of Canopius US Insurance, Inc. and Canopius Reinsurance Limited

LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE) and Canopius Reinsurance Limited (Canopius Re) (Bermuda). Both entities are wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Canopius’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of Canopius US and Canopius Re reflect their strategic importance to and integration within the Canopius group.

Canopius’ balance sheet strength is underpinned by its risk-adjusted capitalisation that improved to the strongest assessment level as at year-end 2023, as measured by Best’s Capital Adequacy Ratio (BCAR). BCAR is expected to have remained at the strongest level in 2024, and to be managed to this level prospectively. The group’s balance sheet strength assessment also considers its conservative asset allocation, good liquidity and prudent reserving strategy, although is offset partially by moderate, albeit declining leverage at the holding company level.

Canopius has demonstrated improving underwriting performance since 2021, which has been the result of management actions, including reducing the group’s exposure to natural catastrophe events, and favorable pricing conditions. Canopius reported a healthy net profit of USD 363.4 million in 2023 (2022: USD 128.7 million) supported by solid technical and investment returns. AM Best expects the group to report good underwriting and investment performance for 2024.

Canopius has a well-established business profile as a specialist (re)insurer within the competitive Lloyd’s market. The group’s market position benefits from its diversified book of business by product and geography.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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