Ratings Recap: Nelson Re/Glacier Re; Kyoei/Swiss Re; Travelers/Lloyds; XL

Standard & Poor’s Ratings Services has assigned its ‘B’ senior secured debt rating to the $75 million class A, series 2007-I principal-at-risk variable-rate notes issued under the newly established shelf program, Nelson Re Ltd., sponsored by Glacier Reinsurance AG (Glacier Re). “This is the first series of notes issued under this program, said S&P. “Through this transaction Glacier Re, as the ceding reinsurer, has bought fully collateralized retrocession protection against high severity losses incurred from U.S. earthquakes or hurricanes, and windstorms in the United Kingdom, France, Belgium, The Netherlands, Germany, Denmark, Ireland, Sweden, Norway, Austria, Luxembourg, and Switzerland. The issuer is a special purpose Cayman Islands company, licensed as a restricted Class B insurer, whose ordinary shares are held in a charitable trust. Under the program, Glacier Re can issue various classes of notes covering various perils with a maximum notional amount of $1.5 billion.

Standard & Poor’s Ratings Services has assigned ratings to the $140 million principal at-risk variable-rate notes issued by Fusion 2007 Ltd., partly sponsored by Kyoei Fire & Marine Insurance Co. (KFMI). “The $30 million class A and $80 million class B notes are rated ‘B’, and the $30 million class C notes are rated ‘BB+’,” said S&P. Through this transaction, Swiss Reinsurance Co., as the counterparty, has bought fully collateralized retrocession protection against high severity losses incurred from typhoons in Japan in connection with a reinsurance contract it entered into with KFMI, and against high severity losses incurred from earthquakes in Mexico.”

Standard & Poor’s Ratings Services has assigned its interactive Lloyd’s Syndicate Assessment (LSA) of ‘3-‘ (“average dependency”) to U.K.-based St. Paul Travelers Syndicate Management – Syndicate 5000. The outlook on the syndicate is stable.

Fitch Ratings has affirmed the ratings of XL Capital Ltd. and its P/C (re)insurance subsidiaries, “including the ‘A+’ Issuer Default Rating (IDR) for XL, and the ‘AA-‘ Insurer Financial Strength (IFS) rating of lead (re)insurance companies XL Insurance (Bermuda) Ltd. and XL Re Ltd.,” said the Fitch. The outlook for all of the ratings is stable. “XL’s ratings reflect its strong competitive position with worldwide capability in commercial insurance and reinsurance, recent improvements in operating results, reasonable financial leverage, solid capitalization of its (re)insurance subsidiaries and conservative investment portfolio,” Fitch explained.