A.M. Best Assigns AWAC an ‘A+ (Superior)’ Rating

A.M. Best has assigned an initial financial strength rating of A+ (Superior) to Bermuda-based Allied World Assurance Company Ltd. (AWAC), the insurer formed in November by American International Group, Chubb Insurance Company and Goldman Sachs.

“This initial rating assignment reflects the strategic benefits that Allied World Assurance is expected to receive through its association with the AIG and Chubb organizations, its strong capitalization and its experienced management team,” said the announcement.

AWAC has an initial capitalization of $1.5 billion, with approximately 52% of this new equity invested by its founding partners and the balance provided by a combination of institutional and private investors. Best indicated that It “expects “to establish a diversified book of business in the commercial property and casualty lines of business, which will include general and professional liability insurance, as well as coverage on energy, transportation and commercial real estate property risks.”

The report noted that Michael Morrison, president and CEO has over 30 years of insurance industry experience with various AIG subsidiaries. It also commented on the rather impressive membership of AWAC’s Board of Directors which includes Hank Greenberg, Chairman of AIG, Dean O’Hare, Chairman of Chubb, and Walter Kielholz, Chairman of Swiss Re.

A.M. Best also expressed its belief that AWAC “will differ from other recent insurance start-ups in that it will derive even greater benefit from its association with its sponsors.” In particular AIG through its affiliates will provide an existing operational platform in Bermuda, underwriting expertise and established distribution networks. It’s expected that a considerable portion of AWAC’s business will emanate from referrals of business similar to that underwritten by AIG and Chubb, as well as Swiss Re.

Topics AM Best Chubb AIG