AM Best has affirmed the financial strength ratings of A (Excellent) and the long-term issuer credit ratings of “a+” (Excellent) of Ascot Bermuda, as well as certain members of the Ascot Insurance US Group (Ascot US). Ascot is a property and specialty (re)insurance group, Ascot US and Ascot Bermuda increasingly provide diversification to this group’s underwriting portfolio. Concurrently, AM Best has affirmed the long-term Issue credit rating of “bbb+” (Good) on the US$ 400 million, 4.25 per cent fixed rate senior unsecured notes due 2030, issued by Ascot. The outlook of these credit ratings is stable. AM Best says the ratings of Ascot Bermuda and Ascot US reflect the consolidated balance sheet strength of Ascot, which it assesses as “very strong”, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Additionally, Ascot receives rating enhancement from its parent, CPP Investments, which AM Best considers to be of “superior financial strength” and supportive of Ascot’s strategy. The group’s balance sheet strength is underpinned by its risk-adjusted capitalisation that AM Best expects to be maintained at the “strongest” level, as measured by AM Best’s capital adequacy ratio, supported by prudent capital management. Since acquiring Ascot in 2016, CPP Investments has made several capital injections to support the group’s growth.“The balance sheet strength assessment benefits from the financial flexibility offered by CPP Investments”, according to AM Best.
