AM Best has reaffirmed the Financial Strength Ratings (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) for Ascot Bermuda Limited (Ascot Bermuda) and several members of the Ascot Insurance U.S. Group, collectively known as Ascot U.S. Additionally, AM Best has confirmed a Long-Term Issue Credit Rating of “bbb+” (Good) for Ascot Group Limited’s USD 400 million, 4.25% fixed-rate senior unsecured notes due in 2030. The outlook for these ratings remains stable.
The ratings reflect the robust consolidated balance sheet strength of Ascot, assessed by AM Best as very strong, alongside adequate operating performance, a neutral business profile, and effective enterprise risk management (ERM). Ascot benefits from support provided by its parent company, the Canada Pension Plan Investment Board (CPP Investments), which is recognized for its superior financial strength and alignment with Ascot’s strategic objectives.
Ascot Bermuda serves as the group’s (re)insurance platform in Bermuda, while Ascot U.S. facilitates access to the U.S. excess & surplus and admitted lines markets, with support through a net worth maintenance agreement.
With gross written premiums of USD 3.8 billion in 2023, Ascot is a property and specialty (re)insurance group. Ascot U.S. and Ascot Bermuda enhance the group’s underwriting diversification, which previously focused heavily on U.S. property risks via its Lloyd’s syndicate. The management team has remained stable and experienced, adapting to the group’s growth.
The group’s balance sheet strength is bolstered by risk-adjusted capitalization, which AM Best anticipates will remain at the strongest level, supported by prudent capital management. The partnership with CPP Investments enhances this strength, evidenced by multiple capital injections since the acquisition of Ascot Underwriting Holdings Limited in 2016.
Ascot has demonstrated adequate underwriting performance, with a consolidated five-year weighted average combined ratio of 97.9% from 2019 to 2023. Notably, Ascot’s Syndicate 1414 achieved an average combined ratio of 90.8% during the same period, outperforming the overall Lloyd’s market. In 2023, underwriting profitability benefitted from a favorable premium rate environment and low loss incidence. AM Best expects continued strong underwriting performance, particularly as Ascot U.S. matures. Overall earnings have also been supported by solid investment income in a rising interest rate environment.
The affirmed FSRs of A (Excellent) and Long-Term ICRs of “a+” (Excellent) for the following Ascot U.S. members also carry a stable outlook:
- Ascot Insurance Company
- Ascot Specialty Insurance Company
- Ascot Surety & Casualty Company
- AmFed National Insurance Company
- AmFed Casualty Insurance Company
- AmFed Advantage Insurance Company
This press release pertains to Credit Ratings available on AM Best’s website. For detailed rating information and disclosures, please visit AM Best’s Recent Rating Activity web page. Additional guidance on the use and limitations of Credit Rating opinions can be found in the Guide to Best’s Credit Ratings.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance sector, operating in over 100 countries with regional offices worldwide. For more information, visit www.ambest.com.
