AM Best has affirmed a financial strength rating of ‘A’ (Excellent) and a long-term issuer credit rating of ‘a’ (Excellent) of Jacana Re, captive reinsurer of BHL group.
Jacana Re, established in Bermuda in 2004 and re-domiciled to Guernsey in 2013, underwrites the risks from the parent company’s operations in South Africa and Australia.
According to AM Best, the outlook assigned to these credit ratings is stable.
The ratings reflect Jacana Re’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
In addition, the ratings consider Jacana Re’s strategic importance to its parent company, BHL, as the group’s internal reinsurer.
Jacana Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at its strongest level by the end of 2023, as measured by Best’s Capital Adequacy Ratio.
The rating agency assesses that the balance sheet strength reflects the company’s conservative investment portfolio, which supports its excellent liquidity position and moderate underwriting leverage.
Jacana Re has a track record of strong operating performance, due to the company’s underwriting discipline across the underlying books of business that it reinsures.
