Credit ratings agency AM Best has assigned new Guernsey reinsurance company Halldora Re Ltd (Halldora Re) a financial strength rating of A- (Excellent) and a long-term issuer credit rating of ‘a-‘ (Excellent) with a stable outlook.
AM Best explained that the ratings reflect Halldora Re’s “very strong” balance sheet strength, adequate operating performance, limited business profile and appropriate enterprise risk management.
Founded in 2025 by pan-European asset management group Arrow Global Group Limited and backed by institutional investors and funds managed by the group, Halldora Re is a start-up reinsurer that provides managing general agency (MGA) capabilities and underwrites specialist risks such as ex-post insurance, contingency insurance and tax insurance.
According to the credit rating agency, Halldora Re’s balance sheet strength is supported by its risk-adjusted capital, which is expected to be at the highest level, as measured by Best’s capital adequacy ratio (BCAR).
In addition, reinsurers’ balance sheet strength assessments benefit from net worth maintenance agreements that support the strongest risk-adjusted capitalization levels going forward. Due to the nature of its business, Halldora Re expects to maintain good levels of liquidity and is free from catastrophe risk.
Halldora Re is expected to have adequate operating results supported by good underwriting results.
AM Best said investment returns are expected to make a steady but modest contribution to total earnings, consistent with the company’s moderately conservative strategy.
As Halldora Re plans to grow in highly specialized and niche segments of the specialty market, it is expected to face relatively low levels of competition.
Finally, AM Best explained that the reinsurer’s strategy is to rely on MGAs linked to Arrow Global or funds managed by the group to obtain its business. This dependence is mitigated by a strong alliance of interests between Halldora Re and the MGA.
