A.M. Best has affirmed the financial strength rating of “A-” (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Sigurd Rück (Switzerland), revising the outlook of the captive reinsurer from stable to negative. As the captive reinsurer of Saipem, a firm involved in the engineering, drilling and construction of major projects in the energy and infrastructure sectors, Sigurd functions as a key element of the parent company’s overall risk management framework. The revised outlook reflects the deterioration of Saipem’s creditworthiness according to A.M. Best, which has the potential to negatively impact Sigured. However, the ratings reflect Sigurd’s balance sheet strength, which A.M. Best assesses to be at the strongest level according to Best’s Capital Adequacy Ratio. The rating agency expects Sigurd’s risk-adjusted capitalisation to remain at the strongest level owing to the captive’s low underwriting leverage, conservative investment policy, moderate exposure to catastrophe losses, and comprehensive retrocession programme. In addition, the ratings are based on Sigurd’s strong operating performance, neutral business profile and appropriate enterprise risk management.
