A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of Alterra Bermuda Limited (Alterra Bermuda) and its affiliated operating companies.
Concurrently, A.M. Best has revised the outlook to stable from negative and affirmed the ICR of “bbb” of Alterra Bermuda’s parent company, Alterra Capital Holdings Limited (Alterra) [NASDAQ: ALTE]. A.M. Best also has revised the outlook to stable from negative and affirmed all debt ratings of Alterra, Alterra USA Holdings Limited, Alterra Finance, LLC (both domiciled in Delaware) and Alterra Capital Trust I. The above named companies are domiciled in Bermuda, unless otherwise specified. (See below for a detailed listing of the companies and ratings.)
The ratings reflect the organization’s solid financial performance and strong risk-adjusted capitalization. Alterra continues to enhance its enterprise risk management framework. In part, this is evidenced by Alterra’s solid financial results for year-end 2011, which was a challenging year for the reinsurance sector as a whole and one of the costliest catastrophe years on record. Alterra has platforms and operations in major global underwriting markets, which gives it flexibility to optimize its underwriting portfolio composition. The organization is well-positioned to execute its strategy going forward.
The revised outlook for Alterra and its subsidiaries reflects the stable execution of the company’s business plan and strategy since its formation from the merger of Max Capital Group Ltd. and Harbor Point Limited in 2010. In August 2011, A.M. Best viewed the departure of a key executive as a material change in the management structure, which could have potentially introduced uncertainty to the organization. A.M. Best has since continued to monitor Alterra and has gained a level of comfort with the current management structure and its core strategy.