AM Best has assigned the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of “aa-” (Superior) to Bermudian-based Arch Group Reinsurance Ltd.

The outlook assigned to these credit ratings is stable.

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

AM Best said: “Arch Group Re was founded in 2022 and operates as an inter company reinsurer, providing the broader Arch Capital Group Ltd with capital efficiencies.

“While Arch Group Re has a limited operating history, all business is derived from the operating companies of Arch, which has historically produced profitable underwriting, and in recent years, double-digit returns on equity.

“The stable outlooks reflect AM Best’s expectation that Arch Group Re will assume profitable business from Arch inter company business and remain well-capitalised as it is further utilised by the greater Arch organisation and becomes integrated into Arch’s operations.”