AM Best assigns rating to GeoVera Reinsurance

GeoVera Reinsurance, part of catastrophe specialist the GeoVera Insurance Group, has secured a financial strength rating (FSR) of A from AM Best. The outlook on the rating is stable.

Cayman-based GeoVera Reinsurance was formed in late 2013 to replace GeoVera Re, which is in the process of being liquidated with all of its assets and liabilities transferred to GeoVera Reinsurance.

AM Best also affirmed the FSR of A of the three other members of GeoVera Insurance Group. The outlook for all ratings is stable.

The rating agency said the rating affirmations “reflect GeoVera’s excellent risk-adjusted capitalisation, strong operating earnings and management’s experience in its market segments”.

It also noted, however, that GeoVera maintains high gross catastrophe leverage and is significantly dependent on reinsurance to reduce this exposure to a manageable level on a net basis.

GeoVera Insurance Group comprises the following members: GeoVera Insurance Company, Pacific Select Property Insurance Company, GeoVera Specialty Insurance Company and GeoVera Reinsurance.