LONDON – MARCH 06, 2025 AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE) and Canopius Reinsurance Limited (Canopius Re) (Bermuda). Both entities are wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Canopius’ 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. The ratings of Canopius US and Canopius Re reflect their strategic importance to and integration within the Canopius group.
Canopius’ balance sheet strength is underpinned by its risk-adjusted capitalisation that improved to the strongest assessment level as at year-end 2023, as measured by Best’s Capital Adequacy Ratio (BCAR). BCAR is expected to have remained at the strongest level in 2024, and to be managed to this level prospectively. The group’s balance sheet strength assessment also considers its conservative asset allocation, good liquidity and prudent reserving strategy, although is offset partially by moderate, albeit declining leverage at the holding company level.
Canopius has demonstrated improving underwriting performance since 2021, which has been the result of management actions, including reducing the group’s exposure to natural catastrophe events, and favorable pricing conditions. Canopius reported a healthy net profit of USD 363.4 million in 2023 (2022: USD 128.7 million) supported by solid technical and investment returns. AM Best expects the group to report good underwriting and investment performance for 2024.
Canopius has a well-established business profile as a specialist (re)insurer within the competitive Lloyd’s market. The group’s market position benefits from its diversified book of business by product and geography.
AM Best Affirms Credit Ratings of Canopius US Insurance, Inc. and Canopius Reinsurance Limited
