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A.M. Best Assigns Ratings to Harbor Point Re Ltd.Dec. 16, 2005 -- A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of "a" to Harbor Point Re Limited (Bermuda). The ratings have a stable outlook. Harbor Point is a spin-off of the reinsurance operations of Chubb Re, a subsidiary of The Chubb Corporation (Chubb) (Warren, NJ). Harbor Point has just been established with $1.3 billion of tangible capital and, in exchange for the business acquired, a $200 million convertible note issued to Chubb. The principal investors in Harbor Point are Trident III, L.P., J.P. Morgan Chase & Co and Chubb. As part of the transaction, Harbor Point will receive the renewal rights to Chubb Re's existing reinsurance business, which is comprised primarily of assumed treaty reinsurance for casualty lines. Harbor Point will also write property catastrophe and other short-tail lines of reinsurance business based upon the expected hard market in these lines, which is taking place in the wake of the hurricanes in 2005. Chubb will retain responsibility for all liabilities related to business underwritten prior to the establishment of Harbor Point with claims being managed by Harbor Point pursuant to a claims services agreement. Harbor Point is retaining key senior management personnel from Chubb Re's operations and an existing infrastructure including back office operations, thereby providing for continuity of operations. Additionally, Harbor Point will have the ability to use Federal Insurance Company (100% owned by Chubb) paper in the near term until a U.S. platform is acquired and Harbor Point becomes established on ceding companies' approved listings. Harbor Point is led by John Berger, chief executive officer, who has 28 years of reinsurance industry experience, which includes serving as President and chief executive officer of Chubb Re since 1998. Chubb Re has a track record of generating favorable operating results relative to its reinsurance peers. Harbor Point's strengths are partially offset by increased competition and new capacity brought to market from both established and newly created companies. This additional capacity could dampen expected returns if pricing of reinsurance coverage fails to meet anticipated levels. A.M. Best will closely monitor the quarterly performance of Harbor Point against its stated business plan, and any material negative deviations in terms of management, earnings, capitalization or risk profile could result in downward pressure on the assigned ratings. For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit Best's Reinsurance Center. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. Back to Press Releases |
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The historical information presented may reflect the activities of the professionals of CCMP Capital Advisors, LLC (together with its affiliates, “CCMP Capital”) while they were members of J.P. Morgan Partners, LLC ("JPMP"), a private equity division of JPMorgan Chase & Co. prior to CCMP Capital's commencing operations. Nothing contained herein constitutes an offer to sell or a solicitation of an offer to purchase any investments or securities of any investment vehicles. © 2008 CCMP CAPITAL ADVISORS, LLC. All rights reserved. |
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