AM Best has assigned a Preliminary Credit Assessment (PCA) to Beazley Bermuda Insurance Limited (BBIL), the new Bermuda-based entity of the London-based specialist insurance and reinsurance company.
BBIL has received the PCA Financial Strength Assessment (Excellent) and the PCA Long-Term Issuer Credit Assessment “a+” (Excellent), with a stable PCA Outlook.
Readers may recall that in addition to the 9-month 2025 results, Beazley also launched a new Bermuda platform to support growth from 2026 onwards.
At that time, Beazley announced that it would invest $500 million to establish new Bermuda institutions, including the establishment of a British holding company, Beazley Bermuda Holdings Limited, and two new Bermuda entities: Beazley Bermuda Insurance Limited and Beazley Bermuda Services Ltd.
The company later confirmed it expected its new Bermuda platform to show a “strong growth trajectory”, with premiums expected to reach approximately $400 million by 2030.
AM Best said the PCA reflects BBIL’s balance sheet strength, which rating agencies assess as very strong, along with adequate operating performance, neutral business profile and appropriate enterprise risk management.
AM Best added: “The PCA also considered a boost from BBIL’s ultimate parent company, Beazley plc, which reflects BBIL’s strategic importance to the group.”
The rating agency went on to say, “BBIL’s balance sheet strength is underpinned by its risk-adjusted capital levels, which are expected to be at their highest level, and the understanding that BBIL will follow Beazley’s prudent reserve and investment strategy.”
According to the rating agency, BBIL is expected to achieve full operating performance review in the medium term, on the back of profitable (albeit possibly somewhat volatile) underwriting performance despite a soft pricing environment.
Investment income is expected to contribute significantly to BBIL’s overall earnings, especially in the initial years of business.
AM Best concluded: “Beazley plc has a strong profile as an internationally recognized insurance group operating primarily at Lloyd’s with a strong franchise.
“BBIL will enable the group to expand its reach and enter Bermuda’s reinsurance market. The company’s portfolio is expected to complement Beazley plc’s portfolio and provide additional diversification in the longer term.”
