A.M. Best Affirms Ratings Of Endurance Specialty Holdings Ltd. And Its Subsidiaries

A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of Endurance Specialty Insurance Ltd. (Endurance) (Bermuda) and its subsidiaries. A.M. Best also has affirmed the ICR of "bbb" and the issue ratings of its publicly traded parent, Endurance Specialty Holdings Ltd. (Bermuda) [NYSE:ENH]. The outlook for each of these ratings is stable. (See below for a detailed listing of the companies and ratings.)

The ratings reflect Endurance's strong level of risk-adjusted capitalization, specialty-focused diversified business profile, improved financial and operational leverage, reduced catastrophe exposure, and geographic diversification following the acquisition of Montpelier Re Holdings Ltd. (Montpelier Re). Furthermore, the ratings reflect Endurance's solid operating performance, experienced management team and its strong enterprise risk management (ERM) program.

The ratings also consider the successful integration of Montpelier Re, which has enhanced Endurance's business profile, distribution channel capabilities, including access to an established Lloyd's franchise and the alternative capital platform Blue Capital, which provides collateralized reinsurance and manages third-party capital. This acquisition increased Endurance's market presence, which strengthens the company's position in the global marketplace and may be a mitigating factor as the company operates in the current competitive market cycle, as rates remain soft, capacity is plentiful and investment yields are low.

Endurance's operating performance has significantly improved over the past three years as the company continues to adhere to its strict underwriting guidelines, reduce its catastrophe exposure, as well as reduce its underwriting and operational leverage. A.M. Best expects the company to continue this trajectory to enhanced profitability as the benefits from the synergies created from the Montpelier Re acquisition.

Endurance has built a solid ERM framework that consists of strong internal controls, enhanced by strong analytics. The company's ERM structure has evolved and allows the entire organization to absorb significant losses. Management views its ERM program as critical to sustaining profitability and reducing volatility.

The FSR of A (Excellent) and the ICRs of "a" have been affirmed for Endurance Specialty Insurance Ltd. and its following affiliates:

  • Endurance Reinsurance Corporation of America
  • Endurance Worldwide Insurance Limited
  • Endurance American Specialty Insurance Company
  • Endurance American Insurance Company
  • Endurance Risk Solutions Assurance Co.
  • American Agri-Business Insurance Company

The following issue ratings have been affirmed for Endurance Specialty Holdings Ltd.:

--"bbb" on $335 million 7% senior unsecured notes, due 2034--"bbb" on $300 million 4.7% senior unsecured notes, due 2022 (unconditionally assumed from Montpelier Re)--"bb+" on $230 million 7.5% Series B non-cumulative preferred shares

The following indicative shelf ratings have been affirmed for debt securities available under existing shelf registration for Endurance Specialty Holdings Ltd.:

--"bbb" on senior unsecured debt--"bbb-" on subordinated debt--"bb+" on preferred stock

Endurance Holdings Capital Trust I &II (guaranteed by Endurance Specialty Holdings Ltd.):

--"bb+" on preferred securities

This press release relates to rating(s) that have been published on A.M. 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 A.M. Best's Recent Rating Activity web page.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160512006522/en/

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX