Arch Reinsurance maintains superior ratings

Ultimate holding company also kept its excellent grade

Arch Reinsurance maintains superior ratings


By Kenneth Araullo

Arch Reinsurance and its affiliates under its holding firm have maintained their superior ratings, as revealed by AM Best.

The credit agency has given the financial strength rating (FSR) of A+ (Superior) and the long-term issuer credit ratings (Long-Term ICR) of “aa-” (Superior) for Arch Reinsurance (Arch) based in Bermuda, along with its strategic affiliates.

Additionally, AM Best has upheld the long-term ICRs of “a-” (Excellent) and the long-term issue credit ratings (Long-Term IRs) for the parent company, Arch Capital Group. (Arch Capital) also located in Bermuda, and its subsidiaries, Arch Capital Group (US) Inc in Delaware, and Arch Capital Finance LLC in Delaware.

These affirmations, AM Best says, reflect the group’s solid foundation. The agency has characterized Arch’s balance sheet as the strongest possible, highlighting its robust operational achievements, advantageous market position, and effective risk management practices.

A significant factor in Arch’s rating is its consistently strong performance over the years. This has been supported by its unparalleled balance sheet, as determined by Best’s Capital Adequacy Ratio (BCAR), praising its effective leadership team.

In 2023, Arch reported high earnings, marking a record-setting year. The company has also preserved its robust risk-adjusted capital stance, taking into account potential stressed ultimate losses.

AM Best anticipates that Arch will continue to have the highest level of balance sheet strength thanks to what it described as steady operational results, positive reserve development, diversified business model, and comprehensive risk management strategies.

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