LONDON, October 26, 2021--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" (Excellent) to Convex Europe S.A. (CES) (Luxembourg) and Convex Guernsey Limited (CGU) (Guernsey). Both entities are ultimately wholly owned subsidiaries of Convex Group Limited (Convex) (Bermuda), the non-operating holding company of the group. The outlook assigned to these Credit Ratings (ratings) is positive.
The ratings reflect Convex’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, limited business profile, and appropriate enterprise risk management. CES’ ratings factor in its strategic importance to and integration within the Convex group; CGU’s ratings consider the significant reinsurance support it receives from Convex Re Limited (Convex Re), an affiliated company.
CES is domiciled in Luxembourg, which enables the group to directly service policyholders across the European Economic Area following the United Kingdom’s exit from the European Union. The company received regulatory approval from Commissariat aux Assurances, Luxembourg’s supervisory body for the insurance sector, on 15 September 2021. CES’s United Kingdom branch is still awaiting Prudential Regulation Authority and Financial Conduct Authority approval. CES benefits from intra-group reinsurance support from Convex Re in the form of a 75% quota share after third-party reinsurance.
CGU was incorporated on 28 May 2021 in Guernsey as a specialist insurance company with an initial focus on security risks. CGU benefits from significant explicit support from the Convex group in the form of a 100% quota share reinsurance from Convex Re.
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 Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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