Company Website:
http://www.ambest.com
OLDWICK, N.J. -- (Business Wire)
A.M. Best Co. has affirmed the financial strength rating (FSR) of
A (Excellent) and issuer credit ratings (ICR) of “a” of Endurance
Specialty Insurance Ltd. (Endurance) and its affiliates.
Concurrently, A.M. Best has affirmed the ICR of “bbb” and debt ratings
of the publicly traded parent, Endurance Specialty Holdings, Ltd.
[NYSE: ENH]. Both companies are domiciled in Bermuda. The outlook for
all ratings is stable. (See below for a detailed listing of the
companies and ratings.)
The ratings reflect Endurance’s strong level of risk-adjusted
capitalization, solid historical operating performance over the last few
years and its specialty focused, diversified business profile. Endurance
has continued to focus on writing agriculture insurance, which now
accounts for approximately 30% of the company’s net premiums written, up
from 20% in 2009. Some of that increase can be attributed to rising
commodity prices. The agriculture insurance business is not linked to
the property/casualty pricing cycle so it can offer a balance to the
total underwriting portfolio. In addition, Endurance has built a solid
enterprise risk management framework that has evolved with the company.
In that regard, Endurance’s losses from the rash of global catastrophes
in 2011 were within A.M. Best’s expectations.
Partially offsetting these positive rating factors is Endurance’s
exposure to large catastrophe losses as well as the current soft
casualty market environment and uncertain financial markets. These
challenges and other rating factors, which could lead to a ratings
downgrade or a revision of the outlook to negative, include unfavorable
operating profitability trends, outsized catastrophe or investment
losses relative to expectations and peers, significant adverse loss
reserve development and/or a material decline in risk-adjusted capital.
Alternatively, factors that could lead to a ratings upgrade include
sustained favorable operating profitability, coupled with maintenance of
strong risk-adjusted capital levels.
The FSR of A (Excellent) and ICRs of “a” have been affirmed for Endurance
Specialty Insurance Ltd and its following affiliates:
- Endurance Reinsurance Corporation of America
- Endurance Worldwide Insurance Limited
- Endurance American Specialty Insurance Company
- Endurance American Insurance Company
- Endurance Risk Solutions Assurance Co.
- American Agri-Business Insurance Company
The following debt ratings have been affirmed:
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| Endurance Specialty Holdings, Ltd— |
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-- “bbb” on $335 million 7.0% senior unsecured notes, due 2034
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-- “bbb” on $200 million 6.15% senior unsecured notes, due 2015
|
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-- “bb+” on $200 million 7.75% Series A non-cumulative preferred
shares
|
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-- “bb+” on $230 million 7.50% Series B non-cumulative preferred
shares
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| |
|
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The following indicative shelf ratings have been affirmed for debt
securities available under the existing shelf registration:
|
| |
|
| | Endurance Specialty Holdings, Ltd— |
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-- “bbb” on senior unsecured debt
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-- “bbb-”on subordinated debt
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-- “bb+” on preferred stock
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|
| | Endurance Holdings Capital Trust I & II (guaranteed by
Endurance Specialty Holdings, Ltd)—
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-- “bb+” on preferred securities
|
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: “Risk
Management and the Rating Process for Insurance Companies”;
“Understanding BCAR for Property/Casualty Insurers”; “Understanding
Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; “Rating
Members of Insurance Groups”; and “A.M. Best’s Ratings & the Treatment
of Debt.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
RESERVED.
Contacts:
A.M. Best Co.
Greg Reisner, 908-439-2200, ext. 5224
Senior
Financial Analyst
greg.reisner@ambest.com
or
Peter
Dickey, 908-439-2200, ext. 5053
Assistant Vice President
peter.dickey@ambest.com
or
Rachelle
Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim
Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public
Relations
james.peavy@ambest.com
Source: A.M. Best Company, Inc.
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