[July 31, 2025]
We are pleased to share that AM Best has upgraded our Financial Strength Rating to A (Excellent) from A- (Excellent), and our Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent), with a Stable outlook.
These upgrades reflect our strong risk-adjusted capitalization (assessed at the strongest level), positive core earnings trends, and premium growth, demonstrating our ability to execute on our business plan. AM Best also recognized our experienced reinsurance management team, our disciplined approach to pricing and investment, and our well-developed enterprise risk management program.
We remain committed to strengthening the financial resilience of life and annuity insurers through our tailored, reinsurance solutions.
OLDWICK - JULY 31, 2025 -- AM Best has upgraded the Financial Strength Ratings to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of Somerset Reinsurance Ltd. (Somerset Re) (Hamilton, Bermuda) and Somerset Reinsurance Company (SRC) (Orlando, FL). The outlook of Somerset Re’s Credit Ratings (ratings) has been revised to stable from positive. The outlook of SRC’s ratings is stable.
The ratings of Somerset Re reflect the company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings of SRC reflect the company’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
Somerset Re and SRC are focused on providing reinsurance solutions for asset-intensive life insurance and annuity business, including programs for new business flow and management of legacy blocks of life insurance and annuities.
The rating upgrades reflect Somerset Re’s ability to execute on its business plan, including positive core earnings trends in profitability and premium growth and also reflect SRC’s support of the overall business plan.
Somerset Re’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level. Liquidity is assessed as more than adequate to fund anticipated short-term obligations of the current blocks of business held on the company’s balance sheet.
Furthermore, Somerset Re continues to enhance its position in its markets of operation as it continues to execute reinsurance agreements each year with known rated insurers in line with the company’s business plan. Experience-related metrics are showing strong evidence of prudent pricing and investment management discipline.
AM Best anticipates capital infusions to continue that will support further new business growth over the intermediate term without the need to access additional funding.
The companies are backed by a very experienced reinsurance management team with deep ties to the industry. The ERM programs are well-developed and currently appropriate for the companies’ business operations.
Link to Press Release: AM Best Upgrades Credit Ratings of Somerset Reinsurance Ltd. and Somerset Reinsurance Company
