LONDON–(BUSINESS WIRE)–AM Finest has affirmed the Monetary Power Score of A (Wonderful) and the Lengthy-Time period Issuer Credit score Score of “a” (Wonderful) of Rembrandt Insurance coverage Firm, Ltd. (Rembrandt) (Bermuda), a captive (re)insurer of Vitol Holding B.V. (Vitol), a gaggle engaged within the buying and selling of petroleum-related merchandise. The outlook of those Credit score Rankings (rankings) is steady.

The rankings mirror Rembrandt’s stability sheet energy, which AM Finest assesses as very sturdy, in addition to its sturdy working efficiency, restricted enterprise profile and applicable enterprise threat administration.

Rembrandt’s stability sheet energy is underpinned by risk-adjusted capitalisation on the strongest stage, as measured by Finest’s Capital Adequacy Ratio (BCAR). AM Finest expects Rembrandt’s risk-adjusted capitalisation to stay comfortably on the strongest stage, supported by low internet underwriting leverage, an outward reinsurance programme that’s positioned with a panel of financially sturdy reinsurers and glorious inner capital era. Partly offsetting components within the stability sheet energy evaluation embrace the captive’s average reliance on reinsurance and its concentrated asset base, with a mortgage offered by Rembrandt to Vitol that represented roughly half of the captive’s whole investments at year-end 2021. The dangers related to this mortgage are mitigated considerably by phrases that enable it to be redeemed at quick discover, together with the nice monetary situation of Vitol itself. As well as, Rembrandt maintains enough money holdings to cowl its internet claims provisions.

Rembrandt’s sturdy working efficiency is demonstrated by its five-year weighted common return on fairness of 16.3% (2017-2021) and is pushed primarily by its good underwriting outcomes, with a five-year weighted common mixed ratio of 44.5% over the identical interval. Working outcomes are additional supported by steady, albeit modest, funding returns.

Rembrandt’s enterprise profile evaluation displays its strategic significance to its father or mother, as an embedded a part of Vitol’s threat administration framework; nonetheless, the captive covers solely a small a part of the father or mother’s insurance coverage wants, writing round 25% of whole insurance coverage premiums. Rembrandt has a concentrated insurance coverage portfolio, with roughly 90% of its premiums derived from marine cargo and legal responsibility dangers.

AM Finest stays the main score company of different threat switch entities, with greater than 200 such autos rated all through the world. For present Finest’s Credit score Rankings and unbiased knowledge on the captive and various threat switch insurance coverage market, please go to www.ambest.com/captive.

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