Ratings Roundup: Everest Re, Bison, PMG, Liffey Re,
Standard & Poor’s Ratings Services has revised its outlook on Everest Re Group Ltd., its operating subsidiaries, Everest Reinsurance Co., Everest National Insurance Co., and Everest Reinsurance (Bermuda) Ltd.; and its U.S.-based intermediary holding company, Everest Reinsurance Holdings Inc., to stable from negative. S&P also affirmed its ‘A-‘ counterparty credit ratings on Everest Re Group Ltd. and Everest Reinsurance Holdings Inc. and affirmed its ‘AA-‘ counterparty credit and financial strength ratings on the operating subsidiaries. “The outlook revision to stable reflects Everest’s very strong operating performance in 2006 and 2007 and strong five- and 10-year RORs, which we believe are in line with expectations given management’s strategy,” explained S&P credit analyst Laline Carvalho. “In addition, although we continue to view Everest’s enterprise risk management as adequate, we believe the group has appropriate caps and controls to support its cycle-management strategy.”
A.M. Best Co. has assigned an issuer credit rating (ICR) of “a-” and affirmed the financial strength rating (FSR) of ‘A-‘ (Excellent) of Bermuda-based Bison Insurance Company Limited, a subsidiary of Duke Energy Corporation, with a stable outlook for both ratings. “These ratings reflect Bison’ s historically adequate capitalization, generally favorable operating performance, conservative reserve levels and effective management of its catastrophe exposures,” said Best. “The ratings also recognize Bison’ s history of maintaining sufficient capital and financial resources to support its ongoing obligations.”
A.M. Best Co. has assigned an issuer credit rating (ICR) of “a” and affirmed the financial strength rating (FSR) of ‘A’ (Excellent) of Bermuda-based PMG Assurance Ltd., a captive insurance company for Sony Group, with a stable outlook. These ratings reflect PMG’ s excellent capitalization, historically strong operating performance and strategic position with Sony, Best explained.
Standard & Poor’s Rating Services assigned its ‘BBB-‘ counterparty credit and financial strength ratings to Ireland-based Liffey Reinsurance Co. Ltd. (Liffey Re), a wholly owned subsidiary of QBE del Istmo, Cia de Reaseguros Inc. (QBERIO; BBB-/Stable/–), with a stable outlook. “The rating reflects the unconditional guarantee of policy obligations provided to the entity by QBERIO,” indicated S&P credit analyst Alfonso Novelo. “This explicit support agreement meets our guarantee criteria. We expect QBERIO to ensure that claims made by Liffey Re policyholders are paid, and as a consequence, the rating on Liffey Re will move in tandem with that on QBERIO.”