Montpelier's A.M. Best Rating Upgraded
NU Online News Service, May 29, 9:13 a.m. EDT?The insurance rating firm A.M. Best in Oldwick, N.J., said it has raised the financial strength rating of Montpelier Reinsurance Ltd. to "A" from "A-Minus", prompted by the company's "superior operating results" and its strong capitalization.
Montpelier Re was formed in late 2001 in Bermuda following the Sept. 11 terrorist attacks and completed its initial public offering in 2002. Best said in its ratings report that the company has implemented strict underwriting and risk management controls and has also developed a strong broker distribution network.
Best added that Montpelier has a strong capitalization. The company is traded on the New York Stock Exchange with shareholders equity of nearly $1.4 billion. Other positive factors, Best noted, include a combined ratio of 67 percent last year, thanks to higher market rates, light catastrophes and the clean balance sheet of an insurance company newly entering the industry.
"The company's strategy of operating with a relatively small staff from a Bermuda-only platform was successful in its first year," Best stated.
Montpelier Re focuses on facultative coverage for commercial property and property catastrophe reinsurance, offering protection against earthquakes, hurricanes, floods and fires, as well as storms. It also writes marine, aviation, casualty and personal accident risks. Last year, the company posted an annual net income of $185.7 million from $379.1 million in sales.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.