AM Best assigns Arch Group Re A+ rating

Credit ratings agency AM Best has assigned Arch Group Reinsurance Ltd. (Bermuda) a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of “aa-” (Superior). The outlook assigned to these ratings is stable.

The ratings agency added that these reflect the reinsurer’s balance sheet strength which has been assessed as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Arch Group Re was founded in 2022 and operates as an inter-company reinsurer, providing the broader Arch Capital Group Ltd. with capital efficiencies.

While Arch Group Re has a limited operating history, all business is derived from the operating companies of Arch have historically produced profitable underwriting and recently reported double-digit returns on equity.

The stable outlook also reflects AM Best’s expectation that Arch Group Re will assume profitable business from Arch inter-company business.

The agency added that it believes the reinsurer will remain well-capitalized as it is further utilized by the greater Arch organization and gets integrated into Arch’s operations.

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