OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Rating of “a” of Eastern
Re Ltd., S.P.C. (Eastern Re) (Grand Cayman, Cayman Islands). The outlook
of these Credit Ratings (ratings) is stable. Concurrently, AM Best has
withdrawn the ratings of Eastern Re at the company’s request to no
longer participate in AM Best’s interactive rating process.
The ratings reflect Eastern Re’s balance sheet strength, which AM Best
categorizes as very strong, as well as its adequate operating
performance, very limited business profile and appropriate enterprise
risk management. The ratings also reflect lift from the lead rating
unit, ProAssurance Group, which is composed of subsidiaries of
ProAssurance Corporation (PRA), based on implicit support.
AM Best’s assessment of Eastern Re’s business profile reflects its
run-off status and its diminished future business prospects, despite an
ongoing connection with the parent from shared clientele. The company’s
balance sheet strength is supported by risk-adjusted capitalization that
measures in the strongest category; however, it is partially offset by
heightened future uncertainty due to its run-off status, which led to
the final balance sheet assessment of very strong. Eastern Re’s
specialization in alternative market workers’ compensation solutions and
segregated portfolio cells creation and management was a growth engine
for the entire ProAssurance Group. The company was put into run-off on
Jan. 1, 2018, following the enactment of the Tax Cuts and Jobs Act of
2017 and all active clients moved into a new vehicle, Inova Re, Ltd. SPC
(under PRA), which is a 953(d) entity paying U.S. taxes.
This press release relates to Credit Ratings that have been published
on AM Best’s website. For all rating information relating to the release
and pertinent disclosures, including details of the office responsible
for issuing each of the individual ratings referenced in this release,
please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Jieqiu Fan
Senior Financial Analyst
+1 908
439 2200, ext. 5372
[email protected]
Sharon
Marks
Senior Financial Analyst
+1 908 439 2200,
ext. 5477
[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
