Fed Re Ltd. receives excellent credit ratings from AM Best

In November 2024, AM Best assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent) to Fed Re Ltd., a reinsurance company based in Bermuda. The outlook of these ratings is stable, reflecting the organization's strong balance sheet strength and adequate operating performance. The assessment by AM Best signifies the company’s ability to meet its insurance and investment risks as it continues to execute its growth plans. Fed Re Ltd. is an affiliate of Federal Life Insurance Company and is expected to focus heavily on multi-year guaranteed annuities (MYGA) sourced through both its parent company and lead generation from its affiliate ICG. This strategic direction highlights the company’s emphasis on lower-risk financial products, which can provide a reliable revenue stream as it expands its market presence in the reinsurance sector. The ratings also suggest a forward-looking expectation where AM Best anticipates continued capital expansion supported by organic growth and assistance from its parent company. Fed Re Ltd. has recently exhibited favorable early operating performance, suggesting that management's strategic plans are on course to yield positive financial results. Moreover, AM Best will keep a close eye on the development of Fed Re's investment portfolio, particularly regarding asset allocation and liability management. As the company matures, the ongoing monitoring of its performance will be crucial as it navigates an evolving market landscape. The stable outlook from AM Best indicates confidence in Fed Re’s future performance and potential for ongoing profitable growth. The company's focus on lower-risk financial products positions it advantageously within the reinsurance market, especially as it seeks further diversification and expansion efforts to enhance profitability.