AM Best affirms the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a’ (Excellent) of Rembrandt Insurance Company Ltd, the Bermudian captive insurer and reinsurer of energy trading group Vitol. The outlook of the ratings is ‘stable’. The ratings reflect Rembrandt’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. Balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects it to remain comfortably at that level, supported by low net underwriting leverage, internal capital generation and a conservative investment portfolio. The captive has considerable reliance on its reinsurance panel, in line with its business model, which the agency says is mitigated somewhat by the panel’s sound credit quality. Rembrandt recorded a five-year weighted average return on equity of 38.2 per cent between 2021 and 2025, driven primarily by underwriting results, with a five-year weighted average combined ratio of 17.9 per cent over the same period as calculated by AM Best. The higher interest rate environment of recent years has also produced good returns on its investment portfolio. Losses from the ongoing conflict in the Middle East have been limited because of the captive’s reinsurance programme. The captive has a concentrated insurance portfolio focused on Vitol’s core operations, with approximately 90 per cent of premiums derived from marine cargo and liability risks. It is embedded within Vitol’s risk management framework but covers only part of the parent’s insurance needs. Written premium volumes fluctuate with the value of crude oil, which AM Best says has been elevated recently, particularly in light of the Middle East conflict.
