A.M. Best Assigns A- (Excellent) Rating to World-Wide Reassurance

A.M. Best Co. assigned an A- (Excellent) initial financial strength rating to World-Wide Reassurance Company Ltd. (WWR), U.K., which is being acquired by an offshore subsidiary of Scottish Annuity and Life.

” The rating reflects the company’s excellent capitalisation, solid niche market position, good operating performance and strong liquidity,” said Best’s announcement. It “also reflects the new business opportunities available to the company as a consequence of its change in ownership; the acquisition of WWR by Scottish Annuity & Life, Grand Cayman — rated A- (Excellent) — is to be completed before the year-end.”

“Offsetting these strengths is the relatively small size of the company, limited management resources and risk exposure in certain emerging markets,” said the report. But Best indicated that WWR gains a certain amount of strength from its business focus, which produced investments with high liquidity. The rating agency said it’s “excellent capital base, access to operational resources from its new parent and focus on selective underwriting leaves it well positioned to continue to attract new business. In addition, further business opportunities are likely to arise from industry consolidation, and the company’s wider use of brokers.”

Finally Best’s announcement concluded that, “The company’s relatively small size restricts it from accessing business in certain business classes, geographic locations and volumes. However, the company’s focus on niche areas and personalised service differentiates it from many of its peers and enables flexibility in its business approach. A.M. Best believes these factors, to some extent, offset the limitations associated with its size.”