AM Best Affirms Credit Rankings of Vantage Risk Ltd. & Affiliates
OLDWICK (N.J.), January 19, 2023–(BUSINESS WIRE)–AM Best Vantage Risk Ltd. (Bermuda), along with its affiliates Vantage Risk Specialty Insurance Company Wilmington (DE) & Vantage Risk Assurance Company Wilmington (DE), do business under the Vantage Group. The Financial Strength Rating was affirmed as “Excellent” and the Long-Term Issuer Rating as “a-” (Excellent). These Credit Ratings (ratings), have a stable outlook.
The ratings reflect Vantage Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
After two years of active operations, the ratings affirmation comes after the group’s initial two years. Underwriting income was adversely impacted by elevated catastrophe losses in the group’s reinsurance operations for the second year in a row; however, AM Best expects projected combined ratios for 2022 to improve over 2021. To address the increased volatility, the group devised a strategy to eliminate property catastrophe business from its balance sheets, while continuing to offer it through insurance-linked securities (ILS). Vantage will benefit from this strategy, which is expected to increase its accretive income and reduce volatility in operating results.
After experiencing slow growth in primary insurance operations, the group continues to expand them despite several operational challenges. As the group continues to execute on its business plans, the reinsurance portfolio will become relatively smaller than the primary portfolio and thus have less of an impact to the group’s bottom line. AM Best will continue to monitor the group’s progression as it enters its third year of operation. AM Best anticipates that the group’s operating performance will begin to stabilize as its business plan is executed.
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 Recent Rating Activity web page. View more information about the limitations and use of Credit Rating opinions. Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit ratings agency, news publisher, data analytics provider and news service that specializes in insurance. The company is headquartered in the United States and has regional offices in London. For more information, please visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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