AM Best Affirms Credit Ratings of Legal & General Reinsurance Company No. 2 Limited

LONDON--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Legal & General Reinsurance Company No. 2 Limited. (L&G Re 2) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.

L&G Re 2 is an indirect subsidiary of Legal & General Group Plc (L&G) and commenced writing business in 2021.

The ratings reflect L&G Re 2’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also factor in lift from L&G due to L&G Re 2’s importance to the group as a vehicle to compete and expand in pension risk transfer (PRT) markets outside the United Kingdom and United States, as well as the financial and operational support it receives from its parent.

L&G Re 2’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), that AM Best expects to be maintained at the strongest level. L&G has injected CAD 315 million of capital into L&G Re 2; further capital injections are expected over the coming years to support business growth.

As per AM Best criteria, L&G Re 2 is considered a start-up operation and its adequate operating performance assessment considers the company’s ability to execute its business plan. AM Best expects L&G Re 2 to selectively grow a profitable portfolio of Canadian PRT business over the medium term.

The company is expected to benefit from L&G’s knowledge and expertise in the PRT business, as well as the group’s investment platforms and risk management oversight.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Stanislav Stoev, ACCA, CFA

Senior Financial Analyst

+44 20 7397 0306

stanislav.stoev@ambest.com

Tim Prince
Director, Analytics

+44 20 7397 0320

timothy.prince@ambest.com

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

al.slavin@ambest.com

Source: AM Best