A.M. Best Co. has assigned an “A” (Excellent) financial strength rating to Da Vinci Reinsurance Ltd., Bermuda, a strategic joint venture formed by Renaissance Reinsurance Ltd. and State Farm Mutual Insurance Co. to write various property/catastrophe coverages on a worldwide basis.
The rating reflects the company’s strong capitalization with investments by State Farm and Renaissance Re, augmented by bridge funding to provide an initial capital base of $500 million. Bridge funding is expected to be replaced over the near term by capital raising initiatives with both strategic and financial investors. Da Vinci Re also benefits from Renaissance Re’s sponsorship and management, which provides it access to a proven business model. A.M. Best expects the company to maintain a conservative financial leverage position with future debt to capital not to exceed 25 percent.
As policy terms tighten and clients become more concerned about security, strength and stability, Da Vinci Re will be well positioned to take advantage of the flight to quality and subsequent price increases. Da Vinci Re’s strengths are partially offset by the potential for increased market competition in property/catastrophe coverage from other new companies.
Topics AM Best
Was this article valuable?
Here are more articles you may enjoy.
Owner of Historic Minnesota Resort Charged With Arson, Insurance Fraud 
Applied Systems, Comulate Spar Over Trade Secret Theft Allegations 
Trump to Issue Order Creating National AI Rule 
Death of Teenager on Carnival Cruise Ship Ruled a Homicide From This Issue
