A.M. Best has affirmed the financial strength rating of “A” (Excellent) and the issuer credit rating of "a" of Rembrandt Insurance Company. The outlook for both ratings remains stable.
Rembrandt is a captive of Vitol Holding, a Dutch holding company of a group engaged principally in the trading of petroleum-related products and commodities.
The ratings of Rembrandt reflect the company's strong financial performance and excellent risk-adjusted capitalisation, as well as its importance to the Vitol group as a risk management tool.
A.M. Best has stated that Rembrandt “consistently generates very strong operating results, as demonstrated by an average five-year adjusted return on capital of 17.9 percent”.
Its strong financial performance is driven by “excellent” underwriting results, with an average five-year combined ratio of 19.5 percent, and is supported by stable, albeit relatively low, investment income.
The company's risk-adjusted capitalisation remains “excellent” also, underpinned by good internal capital generation and an outward reinsurance programme that is placed with a strong panel of reinsurers.
A marginally offsetting factor is the loan facility provided by Rembrandt to the Vitol group, which represents 70 percent of total investments.
A.M. Best has reassured the company that the investment risk associated with this loan is somewhat mitigated by the loan terms, which allow the loan to be redeemed following a short notice period.
Negative rating actions could follow a prolonged period of weak underwriting results, as well as a significant deterioration in Rembrandt's risk-adjusted capitalisation.
A.M. Best has said it finds Rembrandt to be well positioned at its current rating level.
