AM Best Affirms Credit Ratings of Jacana Re Limited

LONDON--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Jacana Re Limited (Jacana Re) (Guernsey). Jacana Re is a subsidiary of BHL Holdings Limited (BHL), a non-operating holding company. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Jacana Re’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings consider, in the form of lift, Jacana Re’s strategic importance to its parent company, BHL, as the group’s internal reinsurer.

Jacana Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to remain comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The balance sheet strength assessment also considers the company's conservative investment portfolio and excellent liquidity.

Jacana Re has a track record of strong operating performance, underpinned by a consistent track record of robust underwriting results. In 2024, the company reported a net-net combined ratio of 76.0% and a return-on-equity of 19.7% under IFRS 17, both broadly in line with its IFRS 4 five-year (2019-2023) averages. Performance is expected to be driven primarily by underwriting, with investment income contributing modestly due to the low-risk nature of the portfolio.

Jacana Re was established in Bermuda in March 2004, as an internal reinsurer of the BHL group and re-domiciled to Guernsey in 2013. The risks underwritten by Jacana Re stem from South Africa and Australia. The entity is used by BHL as a risk management tool, retaining 100% of risks ceded from insurance companies of the BHL group and its ultimate shareholders. Jacana Re’s business profile assessment is constrained somewhat by its geographic concentration of premium volume and lines of business underwritten.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.