A.M. Best Co. has assigned a financial strength rating of “A+” (Superior) and an issuer credit rating of “aa-” to XL Re Europe Limited, the newly formed Dublin-based entity that will handle XL Capital’s European reinsurance platform (See IJ Website Oct. 19). The outlook for both ratings is stable.
“The rating assignments reflect XL Capital Limited’s (Bermuda) recent announcement that it has received approval for a new, fully licensed European reinsurance company based in Dublin, established with $1.5 billion of capital and surplus,” Best explained.
XL Re Europe will also form two new branches in the United Kingdom and France to facilitate the assumption of business previously underwritten by the U.K. branch of XL Re Ltd. and France’s XL Re Europe SA.
Best said that “based on the historical performance of XL Capital’s European businesses and the financial projections provided to A.M. Best by XL Re Europe, its risk-adjusted capitalization and continuing business position in the European market warranted the assignment of the current ratings.”
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