SWBC Re and its sister company, SWBC PC, have been rated excellent by AM Best amid both firms’ strong performances.
Umbrellaed under the SWBC group, both received a financial strength rating (FSR) of A- (Excellent) and a long-term issuer credit rating (Long-Term ICR) of “a-” (Excellent). SWBC Re is headquartered in Bermuda, while SWBC PC is in Texas. Both entities have been given a stable outlook for these ratings.
SWBC Re’s ratings reflect strong balance sheet strength, attributed to its top-tier risk-adjusted capitalization, and supported by low-risk reserves and a conservative investment approach. The company has demonstrated consistent profitability and underwriting success, particularly in the contractual liability insurance sector.
Plans to expand into additional credit lines of business are underway, with expectations of bringing these on to the balance sheet in the near to mid-term. However, its business profile is considered limited due to low geographic diversification and concentration risk, albeit mitigated by a seasoned management team.
Despite outlining a detailed plan for significant growth, including expansion into affiliated accounts, some execution risks remain. AM Best has committed to monitoring SWBC Re’s expansion and will adjust its ratings if necessary, based on the entity’s performance against its projections.
The ratings for SWBC PC are indicative of its robust balance sheet strength, characterized as very strong by AM Best, alongside adequate operating performance, a limited business scope, and effective enterprise risk management (ERM) practices.
AM Best’s ratings are based on the projection that SWBC PC will maintain its very strong balance sheet, bolstered by the highest level of risk-adjusted capitalization throughout a five-year forecast period.
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