A.M. Best has affirmed the FSR of A- (Excellent) and ICR of “a-” of Lion Reinsurance Company, a start-up in Bermuda.
The ratings of Lion Re acknowledge its strong initial capitalisation, conservative operating strategy and the explicit parental support, also considering Lion Re’s strategic role as a captive reinsurer of ASSA Tenedora, S.A.
Also inuring to Lion Re’s ratings is its sound business plan, upon which the profitability and liquidity measures of these ratings are based. The ratings are supported by an amount of capital that meets A.M. Best’s requirements for newly formed companies as measured by Best’s Capital Adequacy Ratio (BCAR).
Lion Re operates as a Bermuda-based reinsurer focused on writing a combination of property, casualty, health and group life business from affiliated insurers.
These positive rating factors are partially offset by execution risk due to the unproven start-up nature of the company.
