Best Affirms Alliance Re “B++” Rating; Removes from “Under Review”

A.M. Best Co. announced that it has affirmed the “B++” (Very Good) financial strength rating of Cyprus-based Alliance International Reinsurance Company (Alliance Re), and has removed the rating from under review with developing implications. The outlook remains stable.

“The rating action follows the company’s decision to withdraw from discussions to be acquired by a third party,” said Best. The ratings had been placed under review earlier this month. Standard & Poor’s, which had taken similar action, has also removed Alliance Re from its CreditWatch (See IJ Website Oct.26).

“The rating reflects the company’s strengthened risk-adjusted capitalisation, good and improved operating performance and good business profile,” Best indicated. “Offsetting factors are the impact that a potential softening of the reinsurance market could have on the company and the reduction in retrocession cover purchased by the company.”