AM Best has assigned a financial strength rating of ‘B++’ (Good) and a long-term issuer credit rating of ‘bbb+’ to Berkeley Re, single-parent captive of Mondelez International.
The outlook for these ratings is ‘stable’.
These ratings reflect Berkeley Re’s strong balance sheet, adequate operating performance, neutral business profile, and appropriate enterprise risk management.
The company’s balance sheet strength is supported by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR).
Berkeley Re also benefits from a highly liquid investment portfolio and limited reliance on reinsurance.
These strengths are partly offset by the company’s exposure to large potential losses in its property line of business, though this is mitigated in part by a deed of commitment from its immediate parent.
Between 2020 and 2024, the captive reported a five-year average combined ratio of 67.6 per cent, reflecting good but volatile underwriting results.
While performance is expected to remain positive in most years, volatility may persist due to exposure to high-severity property risks.
Berkeley Re is a composite reinsurer writing property damage, business interruption, and employee-related risks. Its underwriting portfolio is diversified across both lines of business and geographies.
