A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating of ‘A-‘ (Excellent) and issuer credit rating of “a-” of Bermuda-based Arden Reinsurance Company Ltd. , and has assigned a stable outlook to both ratings.
Best concurrently withdrew the ratings in response to management’s request to no longer participate in its interactive rating process.
Best said the “ratings reflect Arden Re’s excellent level of risk-adjusted capitalization, overall favorable operating performance and solid enterprise risk management capabilities. These strengths are partially offset by Arden Re’s limited business profile following the sale of its insurance and reinsurance operations to the Goldman Sachs Group Inc., and the sale of its Zurich-based credit and surety operations to Arch Capital Holdings Ltd. in April 2012.”
Best explained that as a result of these transactions, “Arden Re is a much smaller entity with a significantly reduced risk profile. Arden Re continues to assume the business underwritten by its Lloyd’s affiliate, Atrium 5 Limited, being a subsidiary of Atrium Underwriting Group Limited, under an existing quota share arrangement that remains in force. This business has historically proven to be very profitable.”
Source: A.M. Best