Validus/IPC affirmed

Christopher Munro

TWO Bermudian reinsurance groups - Validus and IPC - have seen their respective financial strength ratings affirmed by AM Best. Validus Re’s financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” were affirmed, along with the ICR of “bbb” for Validus Holdings Ltd. The outlook for all of the ratings is stable. AM Best explained that the ratings reflect Validus’ “solid risk-adjusted capitalisation, favourable operating performance since inception, experienced management team and prudent operating strategies”. The financial support provided by Validus Holdings is also given as one of the reasons for AM Best’s ratings. Validus’ susceptibility to high severity losses, which arises from the fact that Validus is a catastrophe-focused property insurer, was also taken into consideration. IPCRe Holdings’ strong balance sheet and “well-established presence within the property catastrophe reinsurance market” reflect the FSR of A (Excellent) and ICR of “a” that AM Best has given its reinsurance subsidiaries IPCRe Ltd and IPCRe Europe Ltd.