Convex’s European and Guernsey subsidiaries secure AM Best rating

Specialty re/insurer  Convex Group’s Luxembourg-based European subsidiary and Guernsey entity have secured credit ratings from AM Best.

AM Best has assigned a financial strength rating of A- to both Convex Europe SA (CES) and Convex Guernsey, the wholly owned subsidiaries of Stephen Catlin and Paul Brand-led Convex Group.

The outlook assigned to the ratings is “positive”, the agency said.

The ratings reflect Convex’s consolidated balance sheet strength, which AM Best assesses as “very strong”, as well as the group’s adequate operating performance, limited business profile, and appropriate enterprise risk management.

Best noted that CES’ ratings factor in its strategic importance to and integration within the Convex group; CGU’s ratings consider the significant reinsurance support it receives from Convex Re, an affiliated company.

CES is domiciled in Luxembourg, which enables the group to directly service policyholders across the European Economic Area following the UK’s exit from the European Union. The company received regulatory approval from Commissariat aux Assurances, Luxembourg’s supervisory body for the insurance sector, in September this year. CES’s UK branch is still awaiting Prudential Regulation Authority and Financial Conduct Authority approval. CES benefits from intra-group reinsurance support from Convex Re in the form of a 75 percent quota share after third-party reinsurance.

CGU was incorporated in May this year in Guernsey as a specialist insurance company with an initial focus on security risks. CGU benefits from significant explicit support from the Convex group in the form of a 100 percent quota share reinsurance from Convex Re.

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