Reinsurance firms Somerset Reinsurance Ltd. and Somerset Reinsurance Company receive rating enhancements from AM Best.
AM Best Upgrades Ratings for Somerset Re and SRC
In a recent press release issued by Business Wire, global credit rating agency AM Best announced upgrades for the Financial Strength Ratings and Long-Term Issuer Credit Ratings of Somerset Reinsurance Ltd. (Somerset Re) and Somerset Reinsurance Company (SRC).
The ratings for both companies have been upgraded from A- to A (Excellent), reflecting their strong financial position and positive business outlook. The outlook for Somerset Re's Credit Ratings has been revised to stable from positive, while SRC's ratings outlook remains stable.
According to AM Best, the upgrades are based on several key factors, including strengthened balance sheet, adequate operating performance, and demonstrated ability to execute their business plan effectively.
Balance Sheet Strength
The upgrade for Somerset Re and SRC is largely due to the improvement in their capital adequacy and financial flexibility. Their risk-adjusted capitalization is expected to remain at the strongest level, and liquidity is assessed as more than adequate to fund anticipated short-term obligations of the current blocks of business held on their balance sheets.
Operating Performance
Both companies have shown sustained profitability and credible earnings stability. The rating upgrades for Somerset Re reflect its ability to execute on its business plan, including positive core earnings trends in profitability and premium growth.
Business Execution
AM Best anticipates capital infusions to continue that will support further new business growth over the intermediate term without the need to access additional funding. This consistent ability to carry out strategic initiatives and manage risks appropriately is another factor contributing to the upgrades.
Contact Information
For more information about AM Best, visit www.ambest.com. Edward Kohlberg, a Director at AM Best, can be reached at 1 908 882 1979 or [email protected]. Christopher Sharkey, an Associate Director of Public Relations, can be reached at 1 908 882 2310 or [email protected]. Al Slavin, a Senior Public Relations Specialist, can be reached at 1 908 882 2318 or [email protected]. Stephen Vincent, another Associate Director at AM Best, can be reached at 1 908 882 1705 or [email protected].
AM Best is headquartered in the United States and has regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. The company does business in over 100 countries.
The rating upgrades for SRC reflect its support of the overall business plan. Somerset Re and SRC are focused on providing reinsurance solutions for asset-intensive life insurance and annuity business.
[1]: AM Best press release, [link to the press release] [5]: AM Best press release, [link to the press release]
The upgrades in ratings for Somerset Re and SRC are a testament to their strong financial performance and effective business execution in the cloud-based finance sector. AM Best's positive outlook for these companies is backed by their demonstrated ability to perform consistently and execute their business plans effectively, as well as their strong balance sheets and robust liquidity positions.
