AM Best has assigned Soteria Reinsurance Ltd. a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent), with a stable outlook.
Soteria Re, launched in 2023, is an incorporated Class C insurer registered in Bermuda with focus on the US retail fixed annuities and pension risk transfer space.
The company is owned directly by Soteria Reinsurance Holdings, LLC, a wholly owned subsidiary of Fidelity Management & Research Company LLC.
According to AM Best, the assigned ratings reflect Soteria’s balance sheet strength, which has been assessed by the credit rating agency as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The ratings also reflect the ratings lift the company receives from the ultimate parent, Fidelity Investments (FMR LLC), the agency noted.
“Soteria’s very strong balance sheet strength assessment is underpinned by its risk-adjusted capitalization, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).” AM Best stated.
Adding: “AM Best expects Soteria’s risk-adjusted capitalization to remain at the strongest level, prospectively. The company receives support from FMR LLC in the form of capital contributions, operational support and investing expertise. Soteria provides strategic importance to FMR LLC and the U.S. operating insurance entities by providing reinsurance solutions, as well as growing the wider Fidelity organization’s exposure to the insurance space.”
Soteria’s operating performance is considered adequate. Its current business consists of affiliated business assumed from Fidelity Investments Life Insurance Company, specifically Single Premium Immediate Annuities and Single Premium Deferred Annuities.
The company’s Bermuda Class E license enables it to expand its reinsurance business to unaffiliated counterparties for both annuity and life reinsurance solutions.
AM Best views Soteria’s enterprise risk management (ERM) as appropriate. The company maintains a formal risk appetite statement and investment guidelines, and complies with Bermuda Monetary Authority regulations.
Soteria leverages its relationship with FMR LLC for support in its ERM program.
According to AM Best, a positive rating action could result from a sustained improvement in balance sheet metrics. On the other hand, a negative rating action could occur if Soteria’s strategic importance to its ultimate parent company, FMR LLC, diminishes, or if its balance sheet metrics materially deteriorate.
AM Best will closely monitor Soteria’s performance, the agency concluded.
The post AM Best assigns ratings to SoteriaRe appeared first on ReinsuranceNe.ws.