AM Best has revised the outlook for Canopius US Insurance, Inc. and Bermuda-based Canopius Reinsurance Limited to positive from stable.
At the same time, the rating agency also affirmed the financial strength rating of both entities as A- (Excellent) and the long-term issuer credit rating of “A-” (Excellent).
Canopius US and Canopius Re are both wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies.
AM Best said the ratings reflected Canopius’ strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.
“The ratings of Canopius US and Canopius Re reflect their strategic importance and integration into the Canopius group,” AM Best said.
The positive outlook reflects the agency’s expectation that Canopius will maintain its profitability at a level commensurate with its strong operating performance assessment, supported by effective cross-cycle underwriting management.
According to AM Best calculations, Canopius’ profitability has increased year by year since 2021, with profit after tax reaching US$467 million in 2025 (2024: US$401 million), equivalent to a return on equity of 21% (2024: 22%).
The improvement in underwriting performance since 2021 stems from actions taken by management, including natural catastrophe risk reduction and better risk selection through enhanced data.
The business has grown significantly in recent years and benefited from a favorable pricing environment, with solid investment returns underpinning recent earnings.
AM Best analysts added: “Canopius’ balance sheet strength was supported by Canopius’ risk-adjusted capital levels reaching their highest levels at the end of 2025, as measured by Best’s Capital Adequacy Ratio (BCAR).
“Risk-adjusted capital is expected to remain at this level, consistent with the company’s capital management framework and supported by its sound internal capital generation.”
The group’s balance sheet strength is assessed as strong, driven by its conservative asset allocation, good liquidity and prudent reserve strategy.
However, analysts note that this is offset by modest leverage at the holding company level.
AM Best concluded: “Canopius has a well-established business profile as a specialist re/insurer in the highly competitive Lloyd’s market. The group’s market position benefits from its diversified business by product and geography.”
