AM Best places financial strength ratings of Canopius US and Canopius Re under review

Following a challenging year of above average catastrophe experience and mark-to-market investment losses (a majority of which unwound in the first two months of 2019), Canopius Group’s capital at year end 2018 was at a lower level than previously forecast.

While the Group is fully compliant with its regulatory capital requirements in all jurisdictions, AM Best has taken note of this shortfall to our original projections and placed the financial strength ratings of Canopius US (“CUS”) and Canopius Re (“CRe”) under review.

Today, more than 95% of Canopius’s policies are issued via Lloyd’s whose financial strength ratings are ‘A’ (Excellent) (AM Best); ‘A+’ (Strong) (Standard & Poors); and ‘AA-‘ (Very Strong) (Fitch Ratings). Canopius US maintains a policyholders’ surplus equivalent to 250% of the regulatory minimum, further buttressed by a net worth maintenance agreement from Canopius Group, whilst CRe‘s total capital is more than 400% of its regulatory minimum. Consequently we continue to offer the strongest security to our clients from all three of our distribution channels.

As noted by AM Best, the Group is fully committed to, and in the process of, restoring its risk-adjusted capitalisation to the strongest level. This commitment is fully underpinned by the Group’s shareholders. They are also strongly supportive of the planned acquisition of AmTrust at Lloyd’s which will necessitate a substantial increase in Canopius’s capital resources and which they are unconditionally committed to provide.