A.M. Best has assigned a financial strength rating of B++ (Good) and an issuer credit rating of “bbb+” to Isosceles Insurance Ltd, a 'rent-a-captive' operated by the JLT Group. The outlook assigned to both ratings is stable.
The positive ratings recognises Isosceles’ adequate capitalisation, and further acknowledges the financial and operating strengths of the company's parent, JLT Group Plc, a global provider of insurance and employee benefits related advice.
Formed in 1997, Isosceles is a Bermuda licensed insurance company holding a Class 3 insurance license that permits it to issue policies of insurance to related and unrelated parties. Isosceles operates under a private act of the Bermuda Legislature, created specifically for it. The act of parliament permits the company to establish and operate separate insurance cells for separate clients.
These positive rating factors are partially offset by Isosceles’ lack of a full test in a court of competent jurisdiction on the legality of its unusual structure and the exclusive reliance on JLT for production of all of its business.
A.M. Best has said that it recognizes the complexities involved in this particular structure and will regularly monitor the financial performance of the cell counterparties and the general account to ensure that the capital is adequate to support Isosceles’ current rating.
Factors that could influence the ratings of Isosceles include changes in the financial ability of its clients, and the financial status of JLT and Isosceles.
