AM Best has maintained the under review with negative implications status for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Cowen Reinsurance S.A. (Cowen Re) (Luxembourg).

The Credit Ratings (ratings) reflect Cowen Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

Cowen Re’s ratings were initially placed under review on June 15, 2023. This was due to the uncertainty regarding Cowen Re’s future ownership, given that AM Best does not expect the company to form a part of The Toronto-Dominion Bank’s (TD Bank) long-term plans. Additionally, the negative implications status also reflects the negative trend on the company’s operating performance, which continued to deteriorate in 2023, when Cowen Re reported a pre-tax loss of USD 5.5 million (as calculated by AM Best, before movements in equalisation reserves).

The resolution of TD Bank’s plans for the company has taken longer than AM Best originally expected. The ratings will remain under review with negative implications until AM Best has gained certainty regarding the company’s long-term ownership and business plans.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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