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PRESS RELEASE from provider: Business Wire
This content is a press release from our partner Business Wire. The AP newsroom and editorial departments were not involved in its creation.

AM Best Revises Outlooks to Positive for Somerset Reinsurance Ltd.

February 21, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Feb 21, 2019--AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Somerset Reinsurance Ltd. (Somerset Re) (headquartered in Pembroke, Bermuda).

The ratings reflect Somerset Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

Somerset Re is a life and annuity reinsurer registered in Bermuda. The company is focused on providing underwriting and reinsurance solutions to the life reinsurance marketplace while also offering reinsurance capacity to companies in need of reinsurance solutions for in-force asset intensive business. Somerset Re also provides additional counterparty risk alternatives.

The revised outlooks reflect Somerset Re’s very strong level of risk-based capitalization measured in absolute terms and by Best’s Capital Adequacy Ratio (BCAR). AM Best anticipates the current capitalization level to support new business growth over the intermediate term without the need to access additional funding. Early profitability is noted as part of Somerset Re’s operating profile, with recent financial metrics in line with its submitted business plan.

Conversely, Somerset Re’s very strong capital profile is based on the limited amount of business generated by the company to date, at the early stage of its business plan. The company is backed by a very experienced reinsurance management team with deep ties to the industry. While the company has developed a trend in profitability, a limitation to the ratings level for the company will continue until a meaningful trend can be established over the near to intermediate term. It is noted that to date the company has been growing the business in line with the growth forecast in the original business plan. AM Best will continue to monitor the execution of Somerset Re’s growth to assess the reliability of the earnings profile and financial metrics as trends develop. AM Best anticipates that the company will continue with a profitable earnings profile going forward.

Positive rating action could occur if the company is able to continue to demonstrate a trend of profitable operations along with a capital and business profile in line with the submitted business plan. Conversely, negative rating action could occur if the capital structure of the company declines due to adverse impacts from execution of the company’s business plan.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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CONTACT: Anthony McSwieney

Senior Financial Analyst

+1 908 439 2200, ext. 5715

anthony.mcswieney@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comWilliam Pargeans


+1 908 439 2200, ext. 5359

william.pargeans@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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PUB: 02/21/2019 04:15 PM/DISC: 02/21/2019 04:16 PM