A.M. Best has affirmed the financial strength ratings of A- (excellent) and the long-term issuer credit ratings of “a-” of Fidelis Insurance Bermuda Limited, Fidelis Underwriting (UK) and Fidelis Insurance Ireland Designated Activity Company.
The rating company also affirmed the long-term ICR of “bbb-” of Fidelis Insurance Holdings Limited (Bermuda), the ultimate holding company.
Fidelis, which is a global provider of specialty insurance and reinsurance products, is still in its start-up phase and is one of the newest companies formed in Bermuda. A.M. Best explained that the group received strong acceptance by the market, as evidenced by its significant premium growth.
The rating company categorised Fidelis’ balance sheet strength as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
As measured by Best’s Capital Adequacy Ratio (BCAR), Fidelis maintains the strongest level of risk-adjusted capitalisation, a conservative loss reserve position, overall strong liquidity, a conservative investment platform and demonstrated adequate financial flexibility.
Fidelis has generated improved underwriting performance over the past two years given its disciplined underwriting approach, experienced management team, adaptable business profile and economies of scale.
Fidelis’ investment returns benefited over the past 18 months from its revised investment strategy focused on holding the majority of its assets in fixed-income securities and cash and cash equivalents, with a small allocation to alternative investments.
Prior to this decision, the group maintained the majority of its invested assets in alternative investments that experienced investment losses.
The group’s operating performance has been supported by very strong underwriting results and improving investment returns.