Beazley Bermuda Insurance Limited (BBIL), a new Bermuda-based entity of the London-based specialist insurance and reinsurance company, has been assigned an A (Excellent) financial strength rating and an ‘a+’ (Excellent) long-term issuer credit rating by credit rating agency AM Best.
The outlook on these ratings is stable. The rating is consistent with the preliminary credit assessment (PCA) assigned to BBIL by AM Best in January 2026.
Following recent reports that Zurich Insurance Group’s bid to acquire Beazley is progressing, AM Best is closely monitoring the ratings of all Beazley companies and will review the ratings further if a binding offer is accepted.
AM Best said the ratings reflected BBIL’s “very strong” balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also take into account the upgrade of BBIL’s ultimate parent company, Beazley plc (Beazley), reflecting BBIL’s strategic importance to the group.
Best’s capital adequacy ratio (BCAR) measures BBIL’s balance sheet strength at its strongest level, driven by its risk-adjusted capital and the understanding that the insurer will follow Beazley plc’s prudent provisioning and investment strategy.
BBIL’s risk-adjusted capital will be supported by a substantial capital base of $531 million by early 2026.
Despite the soft pricing environment, BBIL expects to achieve full operating performance review in the medium term, on the back of profitable (albeit possibly somewhat volatile) underwriting performance.
Its investment income is expected to contribute significantly to overall earnings, especially in the early years of its business.
Finally, BBIL will enable the group to expand its reach and enter Bermuda’s reinsurance market. AM Best explained that the company’s portfolio is expected to complement Beazley’s portfolio and provide additional diversification over the long term.
