A.M. Best Co. has assigned an indicative financial strength rating of A- (Excellent) to Danish Re Bermuda Ltd., “a global reinsurer which underwrites at Lloyd’s as an Integrated Lloyd’s Vehicle and through its fully licensed Bermudan risk carrier.” It gave the same rating to syndicate 1400, Danish Re’s Lloyd’s operation.
Best’s announcement indicated that the rating was subject to the full completion of a $200 million private equity placement offer from Trident II, L.P., a $1.4 billion private equity fund managed by Marsh Inc.’s subsidiary MMC Capital, which is expected by the end of January 2002.
“The rating reflects the company’s carefully managed growth since its formation in November 1999 in anticipation of an upturn in the reinsurance market, excellent prospective capitalization and strong financial performance and business profile,” noted the report.
Major rating factors sited by Best included Danish Re’s excellent capitalization, strong operating performance, strong business profile–Danish Re’s core portfolio consists of short-tail property and property related risks — and experienced leadership.
Best also made similar observations concerning the capitalization and management of the company’s Lloyd’s syndicate, which is also backed by MMC Capital, but noted that a decrease in capacity of 11.5 percent was anticipated due to loss events, including a projected $22 million from the WTC attacks.
Topics Excess Surplus AM Best Lloyd's
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