AM Best has affirmed the ratings of Aspida Group, which is made up of Aspida Life Re Ltd and Aspida Life Insurance Company.
The credit rating agency affirmed the A- (excellent) financial strength rating and the a- (excellent) long-term issuer credit rating of Bermuda’s Aspida Life Re Ltd and Durham, North Carolina’s Aspida Life Insurance Company, respectively.
With the outlook of the credit ratings considered stable, they serve as a reflection of the strength of Aspida Group’s balance sheet, which AM Best assessed to be very strong as its operating performance is adequate, its business profile neutral, and it has appropriate enterprise risk management.
“The stable outlooks reflect the expectation that Aspida Group will maintain the strength of their balance sheet and overall liquidity sources with support from Ares Management Corporation and third-party investors as it executes its business strategy of reinsurance growth through block acquisitions and flow reinsurance treaties and retail growth through expanding its distribution partners and its competitive annuity product suite,” said AM Best, as quoted by the Royal Gazette.
It further explained how the outlook also shows how the group was able to maintain an appropriate enterprise risk management framework.
“Operating trends are expected to remain positive over the near to medium term as management continues to focus on interest rate spread management,” added AM Best.
The credit rating agency said that Aspida Group’s risk-adjusted capitalization was at its strongest level, leading to a very strong balance sheet strength assessment.
“AM Best believes that Aspida Group will continue to benefit for the foreseeable future from significant capital infusions and financial resources of Ares and other investors,” it added.
AM Best also expects that Aspida Group will see increasing returns on capital and that it has benefited from a sound enterprise risk management approach with a well-developed framework as well as significant controls that mitigate risks.
The credit rating agency noted that it will continue to monitor the group’s ability to execute its business plans.
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