A.M. Best Assigns Credit Ratings to Lumen Re Ltd.
The ratings reflect Lumen Re’s balance sheet strength, which
Lumen Re, formerly known as
Lumen Re’s balance sheet strength is assessed as strongest. Based on the business plan shared with
Lumen Re’s overall operating performance is assessed as adequate, based on its expected results over the near term. The company’s pricing strategy is to focus on underwriting profits and not on asset return. Investment income is projected to be minimal, which tracks its overall guidelines of having funds invested in short-duration, high-quality investments.
Lumen Re’s business profile is assessed as limited, since the company predominately writes non-proportional, property catastrophe treaty reinsurance business with well-established cedants in highly developed markets. Its line of business relates to low-frequency, high-severity insurance products with a well-diversified group of (re)insurance companies and geographical spread of coverage despite reliance on a single insurance segment. Product concentration is mitigated due to spread of coverage, number of cedants and the number of contracts contained in its portfolio.
Lumen Re’s ERM is assessed as appropriate, based on the company’s projected size and risk profile, which is supported by its focus on maintaining geographic and its risk exposure diversification.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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Associate Director,
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Manager, Public Relations
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Director,
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Director, Public Relations
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Emmanuel Modu, 908-439-2200, ext. 5356
Managing Director,
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