AM Best Assigns Credit Ratings to Subsidiaries of Convex Group Limited

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    LONDON–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of A-
    (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Convex Re
    Limited (Convex Re) (Bermuda) and Convex Group UK Limited (Convex
    UK) (United Kingdom). Both entities are wholly owned subsidiaries of
    Convex Group Limited (Convex), the non-operating holding company of the
    Convex group. The outlook assigned to these Credit Ratings (ratings) is
    stable.

    The ratings reflect the strategic importance of Convex UK and Convex Re
    to the Convex group, Convex’s consolidated balance sheet strength, which
    AM Best categorises as very strong, as well as the group’s adequate
    operating performance, limited business profile and appropriate
    enterprise risk management. Convex UK will be the group’s U.K.-based
    specialty insurer and will be the principal contributor of premium
    income. Convex Re is the group’s Bermuda-based reinsurer. In addition to
    writing third-party reinsurance, it will provide reinsurance protection
    to Convex UK.

    Convex is a new entrant in the competitive specialty (re)insurance
    sector. The group has been capitalised initially with approximately USD
    1.6 billion of common shareholders’ equity, drawn from a USD 1.8 billion
    facility provided by a consortium of investors, including funds managed
    by Onex Corporation, a private equity investor and manager with a track
    record of investing in the insurance industry.

    Convex is expected to maintain the strongest level of consolidated
    risk-adjusted capitalisation, as measured by Best’s Capital Adequacy
    Ratio (BCAR), through a forecast period of five years, taking into
    account AM Best’s additional capital requirements for new company
    formations. An offsetting factor in the balance sheet strength
    assessment is the planned material exposure to catastrophe risk and the
    dependence on reinsurance to manage this risk.

    The adequate operating performance assessment considers the group’s
    five-year business plan, taking into account its competitive environment
    and heightened execution risk during the start-up phase. AM Best expects
    Convex to face strong competition from well-established peers in its
    target markets and be highly reliant on brokers to access business. The
    group has a senior management and underwriting team in place that has
    extensive experience in the targeted classes of business. In AM Best’s
    view, this increases the likelihood of market acceptance and successful
    execution of the group’s business plan.

    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
    Understanding
    Best’s Credit Ratings
    . For information on the proper media
    use of Best’s Credit Ratings and AM Best press releases, please view
    Guide
    for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
    Action Press Releases
    .

    AM Best is a global rating agency and information provider with a
    unique focus on the insurance industry. Visit
    www.ambest.com
    for more information
    .

    Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
    affiliates. ALL RIGHTS RESERVED.

    Contacts

    Jessica Botelho-Young, CA
    Senior Financial Analyst
    +44
    20 7397 0310

    [email protected]

    Catherine
    Thomas, CFA

    Senior Director
    +44 20 7397 0281
    [email protected]

    Christopher
    Sharkey

    Manager, Public Relations
    +1 908 439
    2200, ext. 5159

    [email protected]

    Jim
    Peavy

    Director, Public Relations
    +1 908 439
    2200, ext. 5644

    [email protected]