A.M. Best Assigns Ratings to Newly Formed Catlin Re Switzerland Ltd

LONDON--(BUSINESS WIRE)-- A.M. Best Europe – Rating Services Limited has assigned a financial strength rating of A (Excellent) and an issuer credit rating (ICR) of “a” to Catlin Re Switzerland Ltd(Catlin Re) (Zurich),the newly formed wholly owned subsidiary of Catlin Group Limited(CGL) (Bermuda), the ultimate parent company of the Catlin group.

The ratings of Catlin Re reflect its strategic importance to the Catlin group as the provider of significant intra-group reinsurance protection and as the group’s platform for expansion of its reinsurance business in Europe. The company will underwrite European property and specialty business, as well as a portfolio of global trade credit surety and political reinsurance. In addition, reinsurance of other group subsidiaries will be underwritten through the company’s Bermuda-based branch office from 2011. This internal business is currently written by Catlin Re’s immediate parent, Catlin Insurance Company Limited(Bermuda), and is expected to account for approximately 95% of the company’s gross premium income during its first year of operation.

A.M. Best expects Catlin Re’s stand-alone risk-adjusted capitalisation to be maintained at a strong level based on growth and performance forecasts. The company’s initial capital of approximately USD 1.1 billion represents over a third of the group’s consolidated shareholders’ funds (USD 3.2 billion as at June 2010).

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilised include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Understanding Universal BCAR”; “Natural Catastrophe Stress Test Methodology”; and “Rating Members of Insurance Groups”. Methodologies can be found at www.ambest.com/ratings/methodology.

In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.

A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company.Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2010 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best
Catherine Thomas, +(44) 20 7397 0281
Managing Senior Financial Analyst
catherine.thomas@ambest.com
or
Miles Trotter, +(44) 20 7397 0274
General Manager
miles.trotter@ambest.com
or
Rachelle Morrow, +1-908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: