Two years into its operations, Helvetica Re Rückversicherung AG has retained its A- financial strength and “a-” issuer credit ratings from AM Best, signaling a steady start for the Barbados-based reinsurer as it works through the typical challenges faced by early-stage firms, including high administrative costs and limited market diversification.
The outlook for both ratings remains stable. AM Best’s assessment is based on Helvetica’s balance sheet strength, which it evaluates at the “strongest” level, supported by robust risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), a conservative investment approach, and a reinsurance program considered adequate.
Helvetica began underwriting in 2022 and focuses on surety bonds related to renewable energy and infrastructure projects in Spain. The company is working to expand its geographic presence in Latin America. Until 2025, it operated under the name Berliner Re Reinsurance Company Inc.
Although the company has maintained capital adequacy and low underwriting leverage, AM Best noted that Helvetica continues to operate within a single business line and relies on one distribution channel. This concentration, along with competition in its primary markets, presents limitations in its current profile.
The firm’s operating performance is impacted by high administrative expenses associated with its startup status. According to preliminary figures, Helvetica recorded a net income of $2.3 million in 2022 and $8.7 million in 2024. AM Best reported that premium growth, a consistent level of investment income, and claims containment are contributing to financial results and may continue to do so.
Helvetica’s investment strategy is described as conservative, with a focus on liquidity and asset-liability alignment. The company also holds quota share reinsurance agreements with counterparties considered to have a good level of security. These agreements generate commissions that are expected to help offset operating costs.
The company monitors and adjusts its underwriting guidelines on an ongoing basis in line with performance trends and operational goals.
Is Helvetica’s current approach to managing early-stage costs and business concentration sufficient to support long-term stability in the reinsurance market? Share your thoughts in the comments.
