AM Best has affirmed the Financial Strength Ratings (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of Ascot Bermuda Limited (Ascot Bermuda) (Bermuda), as well as certain members of the Ascot Insurance U.S. Group (collectively referred to as Ascot U.S.). Concurrently, AM Best has affirmed the Long-Term Issue Credit Rating of “bbb+” (Good) on the USD 400 million, 4.25% fixed rate senior unsecured notes due 2030, issued by Ascot Group Limited (Ascot). The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed list of companies and ratings.)

The ratings of Ascot Bermuda and Ascot U.S. reflect the consolidated balance sheet strength of Ascot, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Additionally, Ascot receives rating enhancement in the form of lift from its parent, Canada Pension Plan Investment Board (CPP Investments), which is considered to be of superior financial strength and supportive of Ascot’s strategy.

AM Best views Ascot Bermuda and Ascot U.S. as strategically important to Ascot and fully integrated within the group’s operations and management. Ascot Bermuda is the group’s Bermuda-based (re)insurance platform, while Ascot U.S. provides the group with access to the U.S. excess & surplus and admitted lines markets. Ascot U.S. entities are supported by a net worth maintenance agreement.

Ascot is a property and specialty (re)insurance group with gross written premium of USD 3.8 billion in 2023. Ascot U.S. and Ascot Bermuda increasingly provide diversification to the group’s underwriting portfolio, which historically had concentration toward U.S. property risks through its Lloyd’s syndicate. Ascot has a stable and experienced management team that has been strengthened appropriately as its business has grown.

The group’s balance sheet strength is underpinned by risk-adjusted capitalisation that AM Best expects to be maintained comfortably at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by prudent capital management. The balance sheet strength assessment benefits from the excellent financial flexibility offered by CPP Investments. Since acquiring Ascot Underwriting Holdings Limited in 2016, CPP Investments has made several capital injections to support the group’s growth, demonstrating its ongoing commitment.

Ascot has a track record of adequate underwriting performance, demonstrated by the group’s consolidated five-year weighted average combined ratio of 97.9% between 2019 and 2023 (as calculated by AM Best). The main contributor to the group’s earnings, Ascot’s Syndicate 1414, achieved an average combined ratio of 90.8% over the same period, which was several percentage points better than the overall Lloyd’s market. Underwriting profitability in 2023 benefitted by a strong underlying premium rate environment combined with a moderately low loss incidence in the period. AM Best expects the group to maintain its robust underwriting profitability, assisted by improving performance across Ascot U.S, as the business unit reaches maturity. Overall earnings have been supported by the group’s solid investment income, which has reflected the improved interest rates environment during the period.

The FSRs of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) for the following members of Ascot Insurance U.S. Group have been affirmed with a stable outlook:

• Ascot Insurance Company
• Ascot Specialty Insurance Company
• Ascot Surety & Casualty Company
• AmFed National Insurance Company
• AmFed Casualty Insurance Company
• AmFed Advantage Insurance Company

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.

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