AM Best has affirmed the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a+’ for Blue Whale Re Ltd, domiciled in Vermont. The outlook for the ratings is stable.
Blue Whale is owned by pharmaceutical giant Pfizer and insures the parent group’s global property exposures as well as cyber liability.
“Blue Whale provides coverages with ample limits with substantial retentions, augmenting significant reinsurance capacity supporting its obligations,” AM Best said in its rating statement.
“Nonetheless, the reinsurance program is appropriate and diverse, providing ample coverage for all its lines of business.”
The rating agency said it recognises the quality of the captive’s reinsurers and the “substantial financial resources and assistance” available from Pfizer.
“In recent years of hard market conditions, Blue Whale has opted to participate in small slices of its catastrophe tower as an economic efficiency for the Pfizer enterprise,” AM Best said.
“It also offers capacity for cyber liability coverage when required by hard market pricing.”