Moody’s assigned an “A3” (Good) insurance financial strength rating to Montpelier Reinsurance Ltd., a Bermuda-based property catastrophe and specialty property reinsurance company. Montpelier Re is the main operating subsidiary of Montpelier Re Holdings Ltd., a Bermuda-based, publicly-traded holding company. The rating outlook is stable.
Montpelier was founded by White Mountains Insurance Group Ltd. and Benfield Holdings Limited and commenced operations in December 2001 with approximately $1 billion of capital. In October 2002, the holding company completed an initial public offering, raising net proceeds of approximately $201 million, and began trading on the New York Stock Exchange.
According to Moody’s, Montpelier Re’s “A3” insurance financial strength rating is based on consideration of its meaningful capital base, modest operating and financial leverage profile and efficient operations. Montpelier Re’s conservative operating leverage profile is enhanced by the company’s solid risk management framework. Moody’s notes that, as a newly-formed company, Montpelier Re’s balance sheet is unencumbered by historical loss exposures, and that Montpelier Re’s invested assets are of high credit quality and liquidity.
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