A.M. Best Rates Arch Re ‘A- (Excellent)’

A.M. Best assigned an initial financial strength rating of “A- (Excellent)” to Arch Reinsurance Limited, the company established in Bermuda by Arch Capital Group and several private investment funds, and a similar rating to its affiliate Arch Reinsurance Company, in Nebraska.

Best cited the experienced management team led by chairman and CEO Paul Ingrey and president Dwight Evans, and the strong capitalization, over $1 billion, as reasons for the rating.

However, the rating agency also noted, as it did in issuing ratings for AXIS Specialty (see IJ Website, Dec. 6), that the flood of new capital into the reinsurance market “may suppress necessary price firming and pressure future operating margins.”|”a.m., best, rates, arch, re, ‘a-, (excellent)’