Greenlight Re gets top marks

(CNS): Owing to the firm’s experienced management team, the disciplined implementation of its business plan and excellent risk-adjusted capitalization A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) for Cayman based reinsurance firm Greenlight Re.

The first and still only real RE-insurance company headquartered in the Cayman Islands,  was issued a credit rating (ICR) of “a-” of Greenlight Reinsurance, Ltd. (Greenlight Re). A.M. Best also has affirmed the ICR of “bbb-” of Greenlight Re’s holding company parent, Greenlight Capital Re, Ltd. (both of Cayman Islands). The outlook for all ratings is stable said the specialist rating firm.

“The rating affirmation from A M Best confirms our belief that the Cayman Islands have been an excellent place to nurture and develop a global reinsurance company,” said Len Goldberg the firm’s CEO.

 The ratings recognize the company’s enhanced balance sheet strength following the successful initial public offering (IPO) on May 30, 2007 of Greenlight Capital Re. These strengths are partially offset by the start-up nature of Greenlight Re, the challenges associated with writing profitable business in a softening market and the leverage resulting from an investment portfolio that is primarily composed of publicly traded equitysecurities, AM Best said.

Greenlight Re operates as a reinsurer writing a combination of global property, casualty and specialty reinsurance business primarily through the broker market. It opened its doors in Cayman at the end of 2005. It has been successful building its underwriting team and infrastructure and adding new business and the company also continues to follow stringent underwriting and risk management guidelines.

There are hope still hopes that the firm will lead the way for development of the reinsurance sector in the Cayman Islands. A public/private taskforce was recently put together to try encourage more re-insurance firms to relocate from other jurisdictions such as Bermuda or to for start ups to choose Cayman.