A.M. Best has assigned a financial strength rating of “A- (Excellent)” and a long-term issuer credit rating of “a-” to Nova Casiopea Re (NCRe), the captive reinsurer of Telefonica, a Spanish broadband and telecommunications provider.
NCRe, located in Luxembourg, will start underwriting in 2017 and will derive its business solely from Telefonica’s operations.
The captive is expected to underwrite approximately €54 million of gross written premiums during 2017 and will replace Telefonica’s other captive reinsurer, Casiopea Re.
The ratings reflect NCRe’s “excellent” projected risk-adjusted capitalisation and a risk management framework “commensurate” to its risk profile.
The captive’s risk-adjusted capitalisation is projected to be “excellent”, reflecting “moderate” underwriting leverage and a “relatively” low-risk investment profile.