AM Best affirms the credit ratings of Canopius US Insurance, Inc. and Canopius Reinsurance Limited

LONDON, December 16, 2021– (BUSINESS WIRE) –AM Best confirmed the financial strength rating of A- (excellent) and long-term issuer credit ratings of “a-” (excellent) of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE) and Canopius Reinsurance Limited (Canopius Re) (Bermuda). Both entities are wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies. The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of Canopius’ balance sheet, which AM Best believes to be strong, as well as its adequate operational performance, neutral business profile and appropriate management of business risks.

The ratings of Canopius US and Canopius Re reflect their strategic importance and their integration within the Canopius group.

The strength of Canopius’ balance sheet is based on its very strong risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR). Significant capital contributions from new and existing shareholders in 2020 and early 2021 offset the impact of large claims related to (re) insurance and COVID-19-related natural disasters. Moderate internal capital generation should prospectively support risk-adjusted capitalization at a very high level.

Canopius has suffered technical losses in recent years, largely due to the impact of claims related to natural disasters. The 2020 results were also strongly affected by losses related to COVID-19, driven by business lines of business disruptions and event cancellations. However, overall performance should show moderate improvement prospectively as Canopius continues to reduce its exposure to natural disasters. The group is expected to make a profit in 2021.

Canopius has a well-established business profile as a (re) insurer in the Lloyd’s market, where it ranks seventh in terms of gross written premiums in 2020. In addition, the group’s partnership with Samsung Fire & Marine Insurance Co., Ltd., announced in 2019, is expected to support its expansion into the U.S. and Asia-Pacific markets in the coming years.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the posting and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this post, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

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Contacts

Romeo Berti, ACA CMA
Financial Analyst
+44 20 7397 0297
[email protected]

Tim prince
Director, Analytics
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Christophe sharkey
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Jim peavy
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