Fitch Ratings has affirmed the ratings of These rating actions include
KEY RATING DRIVERS
The ratings affirmation reflects
Fitch notes favorably that
The affirmation also reflects that the company's underwriting performance, while volatile, continues to compare favorably to other property catastrophe reinsurers rated by Fitch when viewed on a multi-year rolling average basis. This is due, in part, to the company's growing diversification into specialty reinsurance lines, Talbot operations within Lloyds, and more recently, its AlphaCat alternative capital segment.
Fitch observes that the company's share of global catastrophe losses since its inception, while significant in some cases, has been manageable and consistent with levels that might be expected from a reinsurer of
Fitch believes that
The balance sheet risk is relatively modest, as its investment portfolio is dominated by highly rated fixed income investments that fared well during periods of capital market volatility. There is relatively little risk of significant adverse loss development from the company's largely short-tail underwriting liabilities.
Key rating triggers that could generate longer term positive rating pressure include a prolonged period during which
Key rating triggers that could result in a ratings downgrade include an increase in underwriting leverage (measured by traditional net premiums written to equity ratios) to levels at or above 0.8 times (x) from recent levels of 0.5x. Likewise, an increase in
Additionally, failure to maintain a multi-year average combined ratio of 90 percent or better, could result in a ratings downgrade.
Fitch could also downgrade the company's ratings if
A material increase in
Fitch has affirmed the following ratings with a Stable Rating Outlook:
--Issuer Default Rating (IDR) at 'A-';
--IFS at 'A'.
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Fitch Ratings has affirmed the ratings of
These rating actions include