AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of Bermudian-based Vantage Risk Ltd and its affiliates, Vantage Risk Specialty Insurance Company and Vantage Risk Assurance Company, both of which are domiciled in Delaware.

The three companies do business as Vantage Group.

The outlook of these credit ratings is stable.

The ratings reflect Vantage Group’s balance-sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

AM Best said: “The rating affirmations follow an active initial four years of operations for the group.

“In the first two years, underwriting income was impacted adversely by elevated catastrophe losses; however, as Vantage Group has continued to grow to scale in 2023 and 2024, and moved property catastrophe business off its balance sheet through its insurance-linked securities vehicle, AdVantage Retro I Ltd, its underwriting results have improved.

“Vantage Group’s strategy is expected to provide the group with accretive income while continuing to reduce volatility in its operating results in future years.

“Over the past two years, the group has achieved operating profitability, though the group has yet to achieve a full-year combined ratio below 100. AM Best expects full-year combined ratios for 2024 to continue to benefit from these changes and track close to break even.”

The ratings agency added: “Vantage Group continues to expand its primary insurance operations, after a slow start in 2021, due to various operational challenges.

“As the group continues to execute its business plans, the reinsurance portfolio has become relatively smaller than the primary portfolio; and thus, has less of an impact to its bottom line.

“While Vantage Group’s diversification and capabilities have expanded significantly since launch, some level of operational risks remains as new business seasons.

“AM Best will continue to monitor the group’s progression as it enters its fifth year of operation. AM Best anticipates that Vantage Group’s operating performance will continue to improve as its business plan is executed.”