A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a+” of Blue Whale Re in Vermont.
The ratings consider the company’s critical and central role and favorable profile as part of the Pfizer Group, as well as the excellent performance of its operations. Partially offsetting these positive rating factors are Blue Whale’s very large gross and net underwriting exposures to property losses and its dependence on reinsurance.
Blue Whale is a single parent captive of Pfizer, the global pharmaceutical company. As Blue Whale reinsures Pfizer’s global property exposures, it plays an important role in Pfizer’s overall enterprise risk management and assumes a critical role in protecting the Pfizer Group’s assets, benefiting from Pfizer’s extensive risk management and loss control programmes.
Blue Whale operates at conservative underwriting leverage levels; however, it provides coverages with extremely large limits, and its gross exposures per loss occurrence are elevated. Although Blue Whale benefits from reinsurance protection, its net retentions remain very substantial, said the ratings firm.? Reinsurance is provided by a large panel of reinsurers, and Blue Whale relies on significant capacity to be able to support its obligations. As such, it is heavily dependent on reinsurance.
Nevertheless, A.M. Best recognises the quality of the reinsurers and the substantial financial resources and support available to the captive as part of the Pfizer Group.
