AM Best Affirms Credit Ratings of Blue Whale Re Ltd.

Rhea-AI Summary

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) for Blue Whale Re Ltd., with a stable outlook. The ratings reflect Blue Whale's very strong balance sheet strength and strong operating performance, highlighting its role as the only captive insurer for Pfizer. Blue Whale insures Pfizer’s global property exposures, enhancing its enterprise risk management.

The company maintains substantial net property retentions and a diverse reinsurance program. Despite its low average loss ratios, it has moderate volatility in key metrics due to high retentions. Negative rating action could arise if Pfizer's support for Blue Whale diminishes.

Positive

• Affirmation of Financial Strength Rating of A (Excellent).
• Stable outlook of Credit Ratings.
• Strong operating performance and very strong balance sheet strength.
• Strategic role as the only captive insurer for Pfizer.

Negative

• Potential negative action if Pfizer's support for Blue Whale decreases.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Blue Whale Re Ltd. (Blue Whale) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Blue Whale’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings also reflect Blue Whale’s strategic position as the only captive insurer for Pfizer Inc. (Pfizer) [NYSE: PFE], a leading global pharmaceutical company. As Blue Whale insures or reinsures Pfizer’s global property exposures, it plays an important role in Pfizer’s overall ERM and assumes a critical role in protecting the Pfizer enterprise’s assets.

Blue Whale provides coverages with significant limits and elevated potential gross exposures per loss occurrence. Its net property retentions remain quite substantial. Nonetheless, the reinsurance program is appropriate and diverse, providing ample coverage for all of its lines of business. AM Best recognizes the quality of the reinsurers and the substantial financial resources and support available to the captive as part of Pfizer. Blue Whale’s historical and prospective operating performance are strong with low average loss and minimal expense ratios. However, volatility of key metrics can be low to moderate with its high retentions for low frequency, high severity coverage.

Blue Whale is a wholly owned captive insurance subsidiary of Pfizer, created to insure or reinsure specific risks of the parent organization. In recent years of hard market conditions, Blue Whale has opted to participate in small slices of its CAT tower as an economic efficiency for the Pfizer enterprise. It also offers capacity for cyber liability coverage when required by hard market pricing.

Negative rating action could occur if AM Best's perception wanes of Pfizer’s ability and/or willingness to support the captive.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230421005281/en/

Kourtnie Beckwith CPCU, AU, AMIM

Senior Financial Analyst

+1 908 439 2200, ext. 5124

kourtnie.beckwith@ambest.com

Dan Teclaw

Director

+1 908 439 2200, ext. 5394

dan.teclaw@ambest.com

Christopher Sharkey

Associate Director, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

Source: AM Best

FAQ

What are AM Best's recent ratings for Pfizer's captive insurer Blue Whale?

AM Best has affirmed Blue Whale's Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of 'a+' (Excellent) with a stable outlook.

How does Blue Whale Re Ltd. support Pfizer Inc.?

Blue Whale Re Ltd. insures or reinsures Pfizer's global property exposures, playing a key role in Pfizer's enterprise risk management.

What could cause negative rating action for Blue Whale?

Negative rating action could occur if AM Best perceives a decline in Pfizer's ability or willingness to support Blue Whale.

What is the significance of Blue Whale's reinsurance program?

Blue Whale's reinsurance program is diverse, providing ample coverage across all lines of business and ensuring substantial financial support.