AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE) and Canopius Reinsurance Limited (Canopius Re) (Bermuda). Both entities are wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies.

The Credit Ratings (ratings) reflect Canopius’ balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of Canopius US and Canopius Re reflect their strategic importance to and integration within the Canopius group.

The revision of the outlooks to stable from negative reflects an improvement in Canopius’ risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to have recovered to the strongest level as at year-end 2023, up from the strong level as at year-end 2022. Risk-adjusted capitalisation is expected to stabilise at a similar level.

Canopius’ underwriting results showed continuing recovery in 2022, after underperforming during the period 2017-2020. AM Best expects the group to report good underwriting and investment performance for 2023. Prospectively, Canopius is expected to deliver solid operating profitability, benefitting from the actions management has taken over recent years to reduce exposure to natural catastrophe events, as well as a strong rating environment.

Canopius has a well-established business profile as a (re)insurer in the Lloyd’s market, although it is subject to a strong level of competition.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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