AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Rembrandt Insurance Company (Rembrandt).
Rembrandt is a captive (re)insurer of Vitol Holding B.V. (Vitol), a Swiss-based Dutch multinational energy and commodity trading company.
The outlook of these ratings is stable.
AM Best says the ratings reflect Rembrandt’s balance sheet strength, which it assesses as “very strong”, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Its balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s capital adequacy.
The ratings company expects Rembrandt’s risk-adjusted capitalisation will remain at the strongest level, supported by low net underwriting leverage and an outward reinsurance programme.
Partially 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.
Rembrandt’s strong operating performance is demonstrated by its five-year (2018-2022) weighted average return on equity of 24.2 per cent.
The captive is embedded within Vitol’s risk management framework; however, it covers only part of its parent’s insurance needs. Rembrandt has a concentrated insurance portfolio focused on the core operations of Vitol, with approximately 90 per cent of its premiums derived from marine cargo and liability risks.
