AM Best affirms the Financial Strength Rating of 'B++' (Good) and the Long-Term Issuer Credit Rating of 'bbb+' (Good) of Berkeley Re Designated Activity Company. The outlook of the ratings is stable. Berkeley Re is the Ireland-domiciled captive reinsurer for Mondelez International, the US-based global confectionary, food and beverage company. The ratings reflect Berkeley Re's balance sheet strength, which AM Best assesses as strong, along with its adequate operating performance, neutral business profile and appropriate enterprise risk management. Balance sheet strength is underpinned by the captive's risk-adjusted capitalisation at the strongest level at year-end 2025, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best notes that the company benefits from a liquid investment portfolio and low reinsurance dependence. A partly offsetting factor is the captive's exposure to large losses within its property line of business, which can lead to volatility in risk-adjusted capitalisation. This is mitigated in part by a deed of commitment granted by the captive's immediate parent. The adequate operating performance assessment reflects Berkeley Re's track record of good underwriting results, demonstrated by a five-year average combined ratio of 67.7% over 2021 to 2025, as calculated by AM Best. The captive's combined ratio of 102.7% for 2025 reflects volatility in its technical results. Prospectively, AM Best expects performance to be positive in most years, although it remains subject to volatility owing to Berkeley Re's exposure to potentially large property losses. Berkeley Re is a captive composite reinsurer that mainly underwrites property damage and business interruption, alongside employee-related risks. Its underwriting portfolio is well diversified by line of business and geographically, reflecting its parent company's worldwide presence.
