A.M. Best has affirmed the financial strength and the issuer credit ratings of Vermont-based Blue Whale Re, at “A (Excellent)” and “a+”, respectively.
The ratings reflect Blue Whale’s strong capitalisation and conservation operating strategy, according to A.M Best.
Blue Whale is a single parent captive of pharmaceutical company Pfizer. As Blue Whale reinsures and insures Pfizer’s global property exposure, it plays an important role in the company’s overall enterprise risk management and loss control programmes.
Blue Whale operates at conservative underwriting leverage levels, but 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.
A large panel of reinsurers provides reinsurance, and Blue Whale relies on significant capacity to be able to support its obligations. As such, it is heavily dependent on reinsurance.
A.M. Best recognises the quality of the reinsurers and the substantial financial resources and support available to the captive as part of Pfizer.
According to the rating agency, positive rating actions could occur if there is a sustainable and long-term improvement in the operating performance and capital strength of Blue Whale and Pfizer.
