AM Best Revises Under Review Status to Positive for Credit Ratings of Kelvin Re Limited

LONDON--(BUSINESS WIRE)--
AM Best has revised the implications of the under review status to positive from negative for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Kelvin Re Limited (Kelvin Re) (Guernsey).

The Credit Ratings (ratings) reflect Kelvin Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile, and appropriate enterprise risk management.

The rating actions follow the acquisition of Kelvin Re by Marco Capital Holdings Limited (Marco Capital) via its wholly owned subsidiary, Humboldt Re Limited, on 10 July 2023. Marco Capital is a Malta-domiciled property/casualty (re)insurance run-off specialist.

The ratings were placed under review with negative implications on 17 March 2023 given the uncertainty regarding Kelvin Re’s future ownership and strategy. The revised implications of the under review status reflects improved clarity over the company’s post-acquisition balance sheet and business plans, together with certainty over its future ownership.

Before removing the under review status, AM Best must first conduct a thorough analysis of Marco Capital and assess the implications of Kelvin Re’s integration within the wider group strategy.

Kelvin Re has been in run-off since December 2020, and its short-tail book of property-related reserves are expected to develop positively over the coming years. The company is not expected to underwrite any new business. Kelvin Re’s risk adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain very comfortably at the strongest level.

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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Dale Kirby
Financial Analyst

+44 20 7397 0276

[email protected]

Tim Prince
Director, Analytics

+44 20 7397 0320

[email protected]

Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

[email protected]

Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

[email protected]

Source: AM Best