Vantage Risk Ltd has survived the significant impact to its underwriting income from elevated catastrophe losses in its reinsurance operations during its first year of operations.

In addition, employee turnover and market conditions in the group’s primary insurance operations resulted in lower primary insurance premium than originally anticipated, overweighting the impact of the reinsurance portfolio losses.

This from ratings agency AM Best, which affirmed the financial strength rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of the Bermuda company and its affiliate, Vantage Risk Specialty Insurance Company (Chicago, IL), which do business as Vantage Group.

The agency said the outlook of the 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.

As the group continues to execute on its business plans, the reinsurance portfolio will become relatively smaller than the primary portfolio and thus have less of an impact to the group’s bottom line.

Best said that despite these challenges, the group has continued to execute on many of its goals in its first year, hiring staff members at various levels and acquiring new primary insurance companies to support the business plans.

The agency said it will continue to monitor the group’s progression as it enters its second year of operation, anticipating that the group’s operating performance will begin to stabilise as its business plan is executed.