A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-“ of Casiopea Re, located in Luxembourg.
Casiopea Re is a captive of Telefonica, a provider of telecommunication services across Europe and Latin America.
The ratings reflect Casiopea Re’s “excellent” risk-adjusted capitalisation, A.M. Best said.
It added that the captive’s regulator, Commisariat aux Assurances of Luxembourg, has full authority in relation to any release of capital from this equalisation reserve.
The ratings company explained: “The captive’s low risk retention is supported by a comprehensive reinsurance programme, with a panel of financially strong reinsurers that mitigates the risk of large property and liability losses depleting capital.”
