AM Best revises Arch’s issuer credit rating outlook to positive

By Michael Loney

March 7 - (The Insurer) - AM Best has revised the outlooks to positive from stable for Arch Capital and its subsidiaries’ long-term issuer credit ratings, and affirmed the Bermudian (re)insurer's A-plus financial strength rating with stable outlook.

The revision of the ICRs’ outlook to positive applies to the aa-minus rating of Arch Reinsurance and its strategic affiliates, and the a-minus rating of Bermuda-based ultimate holding company Arch Capital Group.

AM Best said that Arch’s ratings, along with its ICR outlooks revision to positive from stable, are based on the (re)insurer's historically strong operating performance.

“Though the reinsurance market has grown more favorable, particularly in the period after the January 1, 2023 renewal season, Arch has a proven track record, even in softer market years, of producing superior underwriting results and investment returns,” it said.

The rating agency added that Arch has continued to differentiate itself from its peers in the recent market with more favourable underwriting conditions.

The positive outlooks on the ICRs reflect AM Best's expectation that the group will continue to outperform its peers through profitable underwriting and “robust” investment returns, as it supports recent strategic acquisitions and continues to enhance its market position.