AM Best has assigned ratings to two reinsurers domiciled in Bermuda.

The ratings agency assigned a financial strength rating of A (Excellent) and a long-term issuer credit rating of “a+” (Excellent) to both Fontana Reinsurance Ltd and Fontana Reinsurance US Ltd.

The outlook assigned to these credit ratings is stable.

The ratings of Fontana Re and Fontana Re US reflect their balance sheet strength, which AM Best assesses as very strong, as well as their adequate operating performance, neutral business profile and very strong enterprise risk management.

Both Fontana Re and Fontana Re US are owned by Fontana Holdings LP.

Fontana is a joint venture between Bermudian-based RenaissanceRe Holdings Ltd and various third-party capital partners that is RenaissanceRe’s first joint venture focused on casualty and specialty risk, AM Best said.

Fontana will be managed solely by Renaissance Underwriting Managers Ltd and is expected to be consolidated into RenaissanceRe’s financial statements, the agency said.

Fontana has $475 million in committed capital and has assumed a whole account quota share of RenaissanceRe’s casualty and specialty book.

AM Best said the ratings assigned to the Fontana entities reflect the strength and depth of RenaissanceRe’s management team and its leadership in ERM, as well as the benefits that should accrue to Fontana as a result of RenaissanceRe – through RUM – managing underwriting, pricing, risk selection, reserves, investments, claims, etc.