AM Best has assigned credit ratings to Bermuda-based Prismic Life Reinsurance, Ltd. (Prismic Life Re) and Prismic Life Reinsurance International, Ltd. (PL Re International) with a stable outlook.
Rating agencies have assigned Prismic Life Re a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent). PL Re International also received an FSR of A- (excellent) and a long-term ICR of “a-” (excellent).
AM Best assesses that Prismic Life Re and PL Re International have very strong balance sheet strengths, with adequate operating performance, limited business profiles and appropriate enterprise risk management (ERM).
Both entities are recently established reinsurers in Bermuda, Prismic Life Re primarily operating U.S. operations and PL Re International operating primarily non-U.S. operations.
AM Best noted that Prismic has demonstrated the ability to raise capital from investors to support future business plans and that management has successfully executed on those plans.
Through several rounds of financing, both Prismic entities have achieved adequate capital levels and increased risk-adjusted capital.
Each additional treaty is expected to have specific reserve requirements, which AM Best will monitor through its credit ratings practices. Prismic management also provided the business plan required to rate the newly formed company as a basis for the new rating.
The ratings also reflect the company’s financial flexibility and ability to acquire new business through strong relationships with companies such as Prudential and Warburg Pincus. AM Best noted that the acquired businesses brought a degree of assumed product risk to the Prismic Life Re and PL Re International management teams.
