A.M. Best has affirmed the financial strength ratings of “A (Excellent)” and the long-term issuer credit rating of “a” of Rembrandt Insurance Company, located in Bermuda.
Rembrandt is captive reinsurer and insurer of Vitol Holding, a holding company of a group engaged in trading petroleum-related products and commodities.
According to A.M. Best, the ratings reflect Rembrandt’s “very strong financial performance and excellent risk-adjusted capitalisation, as well as its importance to the Vitol group as a risk management tool”.
The ratings company said: “The company’s risk-adjusted capitalisation remains excellent, supported by good internal capital generation, low net underwriting leverage and an outward reinsurance programme that is placed with a panel of financially strong reinsurers.”
“A marginally offsetting factor is the captive’s concentrated asset base, with a loan facility provided by Rembrandt to the Vitol group, representing 75 percent of total assets at year-end 2015. The investment risk associated with this loan is somewhat mitigated by terms that allow it to be redeemed at short notice.”
