AM Best has assigned a financial strength rating of B++ (good) and a long-term issuer credit rating of “bbb+” (good) to Ireland-domiciled Berkeley Re Designated Activity Company (Berkeley Re). The outlook for the ratings is stable.
Berkeley Re is a captive composite reinsurer for Mondelez International, a global confectionary, food and beverage company based in the United States.
It primarily underwrites property damage and business interruption and employee related risks.
AM Best said Berkeley Re’s underwriting portfolio is well-diversified by line of business as well as geographically.
The company benefits from a liquid investment portfolio and low reinsurance dependence.
Berkeley Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).
A partly offsetting factor in the assessment is the company’s exposure to large losses within its property line of business.
The ratings reflect Berkeley Re’s 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 adequate operating performance assessment reflects Berkeley Re’s track record of good, but volatile underwriting results, as demonstrated by a five-year average combined ratio of 67.6% (2020-2024).
“Prospectively, performance is expected to be positive in most years but remains subject to volatility due to Berkeley Re’s exposure to potentially large property losses,” AM Best said.