AM Best has assigned Ascot Insurance Guernsey Limited (Guernsey), a wholly reinsured subsidiary of Ascot Bermuda Limited (Ascot Bermuda) (Bermuda), a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent), with a stable outlook for these ratings.
At the same time, AM Best affirmed Ascot Bermuda’s FSR of A (Excellent) and Long-Term ICR of “a+” (Excellent), as well as the ratings of certain members of Ascot Group Limited (Ascot), collectively referred to as Ascot Insurance U.S. Group (Ascot U.S.).
The ratings agency also affirmed the Long-Term Issue Credit Ratings of “bbb+” (Good) on Ascot’s $400 million, 4.25% fixed-rate senior unsecured notes due 2030 and $350 million, 6.349% fixed-rate reset senior unsecured notes due 2035. The outlook for both ratings is stable.
AM Best noted that the ratings of Ascot Bermuda and Ascot U.S. reflect Ascot’s consolidated balance sheet strength, which it assessed as very strong, alongside adequate operating performance, a neutral business profile and appropriate enterprise risk management.
Additionally, Ascot benefits from rating enhancement through support from its parent, Canada Pension Plan Investment Board (CPP Investments), which is considered financially stronger and supportive of Ascot’s strategy.
Ascot Bermuda serves as the group’s Bermuda-based re/insurance platform, while Ascot U.S. provides access to the US excess and surplus and admitted lines markets. AM Best considers both entities strategically important to Ascot and fully integrated into the group’s operations and management.
Ascot U.S. and Ascot Bermuda diversify the group’s underwriting portfolio, which has historically been concentrated in US property risks through its Lloyd’s Syndicate 1414.
The group’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which AM Best expects to remain comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This is supported by prudent capital management.
The balance sheet strength assessment also benefits from the excellent financial flexibility provided by CPP Investments. Since acquiring Ascot Underwriting Holdings Limited in 2016, CPP Investments has made several capital injections to support the group’s growth, demonstrating its ongoing commitment.
The FSR of A (Excellent) and Long-Term ICRs of “a+” (Excellent) for the following members of Ascot Insurance U.S. Group have also been affirmed, with stable outlooks: Ascot Insurance Company, Ascot Specialty Insurance Company, Ascot Surety & Casualty Company, AmFed National Insurance Company, AmFed Casualty Insurance Company and AmFed Advantage Insurance Company.
