A.M. Best has affirmed the financial strength ratings of “A” (Excellent) and the long-term issuer credit rating of “a+” (Excellent) of Blue Whale Re. The outlook of these credit ratings is stable. A.M. Best notes that the ratings reflect Blue Whale’s strong balance sheet, strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also reflect Blue Whale’s strategic position as the captive insurer for global pharmaceutical company, Pfizer. The captive insures and reinsures Pfizer’s global property exposures, making up an important element of Pfizer’s overall ERM strategy. Since the COVID-19 pandemic, Pfizer has increased its use of Blue Whale by adding incremental product liability coverage for a portion of its vaccine-related products distributed in developing countries as a precautionary measure beyond required sovereign indemnifications. Blue Whale’s strong capitalisation is reliant on the parent, providing coverages with very large limits. A.M. Best notes that although the captive benefits from reinsurance protection, it is heavily dependent on reinsurance, with substantial net retentions. A.M. Best adds that any changes in the agency’s perception of Pfizer’s ability and willingness to support Blue Whale will impact the captive’s ratings.
