AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit rating of “aa-” (Superior) of Top Layer Reinsurance (Top Layer).
Top Layer is co-owned by State Farm Mutual Automobile Insurance Company (State Farm) and Renaissance Reinsurance (RenaissanceRe).
The outlook of these credit ratings is stable.
AM says the ratings reflect Top Layer’s balance sheet strength, which it assesses as “strong”, as well as adequate operating performance, neutral business profile and very strong enterprise risk management.
These ratings continue to reflect the support Top Layer receives from its co-owners. The ratings also reflect its parental support from State Farm. Top Layer provides State Farm with exposure to non-US high layer reinsurance risk.
Since Top Layer was established in 1999, it has generated solid operating results and sustained only two losses. AM Best attributes this to the property catastrophe underwriting experience of RenaissanceRe. This is in addition to the fact that there are very few catastrophes of a magnitude sufficient to impact the programmes written in Top Layer’s areas of focus. These are high excess layers of non-US property catastrophe risks.
