AM Best has affirmed a financial strength rating of ‘A’ (Excellent) and a long-term issuer credit rating of ‘a+’ (Excellent) for Blue Whale Re, captive insurer for Pfizer.
According to AM Best, the outlook assigned to these credit ratings is stable.
The ratings reflect Blue Whale’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile, and appropriate enterprise risk management.
As the only captive insurer for Pfizer, Blue Whale provides coverage with ample limits and substantial retentions, augmenting significant reinsurance capacity and supporting its obligations.
AM Best evaluates that the reinsurance programme is appropriate and diverse, providing ample coverage for all its lines of business, whilst recognising the quality of the reinsurers and the substantial financial resources and assistance available to the captive as part of Pfizer.
Furthermore, the rating agency determines that the captive's operating performance remains favourable when compared to its peers, with low average losses and minimal expense ratios.
In recent years of hard market conditions, Blue Whale has opted to participate in small slices of its catastrophe tower as an economic efficiency measure for the Pfizer enterprise, as well as providing cyber liability coverage when required by hard market pricing.
