A.M. Best has affirmed Rembrandt Insurance Company’s financial strength rating of A (Excellent) and the long-term issuer credit rating of “a”.
Rembrandt Insurance Company is a captive (re)insurer of Vitol Holding, a group engaged in trading of petroleum-related products.
The captive’s ratings reflect its balance sheet strength, which A.M. Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
A.M. Best said it expected Rembrandt’s risk-adjusted capitalisation to remain at the strongest level, supported by low net underwriting leverage, an outward reinsurance programme that is placed with a panel of financially strong reinsurers and excellent internal capital generation.
Partly offsetting factors in the balance sheet strength assessment include the captive’s moderate reliance on reinsurance and its concentrated asset base, with a loan provided by Rembrandt to Vitol that represents approximately one-half of the captive’s total assets.
A.M. Best suggested that Rembrandt’s strong operating performance is demonstrated by its five-year average return on capital of 12.9 percent between and is driven primarily by its good underwriting results, with a five-year average combined ratio of 23.7 percent.
