May 5, 2026 Reinsurance

AM Best Assigns Credit Ratings to Calix Re Limited

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Calix Re Limited (Calix Re) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Calix Re’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 (ERM).

Calix Re is a recently formed Class E licensed Bermuda reinsurance company. The majority of business placed with it initially will be Japan-based fixed term annuities. Calix Re will utilize a long-standing reinsurance partnership for its initial book of business and future growth. Initial capital will come from the parent company, Challenger Limited, and will be invested in various long-duration assets that will match expected liabilities. AM Best has assessed the company’s balance sheet strength as very strong, as measured by Best’s Capital Adequacy Ratio (BCAR), and by Bermuda’s own regulatory solvency capital requirement measurement. Capitalization is supported by an adequate level of liquidity based on the company’s planned asset allocation and liquidity risk management plan.

AM Best expects Calix Re’s operating performance assessment to remain at the adequate level based on the performance of a well-seasoned annuity block with low surrender experience that will be placed with it. Break-even results are expected in the near-term, which AM Best will monitor for progress and deviations from the five-year plan. Overall execution risk exists under the company’s five-year plan.

Lastly, ERM is assessed as appropriate for Calix Re’s size and scale of operations. The program largely relies on best practices and robust governance processes that will come from the parent company. A full personnel plan is in place with resources scaled to match operations as it grows. AM Best will monitor the company’s risk management performance as it’s enacted and a track record becomes established.

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 specializing 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.