Challenger Limited’s recently formed Calix Re Limited (Calix Re) is an E-rated licensed Bermuda reinsurer that has been assigned an A- (Excellent) financial strength rating and an ‘a-‘ (Excellent) long-term issuer credit rating by AM Best.
The majority of Calix Re’s business will be Japan’s regular annuity business. It will leverage long-term reinsurance partnerships for its initial business and future growth.
Calix Re’s initial capital will be provided by its parent company, Challenger Limited, and invested in a variety of long-term assets consistent with expected liabilities.
The credit rating outlook is stable. The rating reflects Calix Re’s balance sheet strength, which AM Best assesses as very strong, as well as adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
AM Best expects Calix Re’s operating performance to remain at an appropriate level, driven by the performance of the more experienced annuity blocks with lower surrender experience that will be deployed alongside it.
AM Best monitors progress and deviations from the five-year plan and expects to achieve breakeven in the short term. There are overall implementation risks in the company’s five-year plan.
ERM was assessed to be suitable for Calix Re’s size and scale of operations. The program relies heavily on best practices and strong governance processes provided by the parent company. Developed a complete personnel plan and adjusted resource scale according to business development. AM Best will monitor the Company’s risk management performance as it is enacted and a track record is established.
