AM Best assigns favorable ratings to Berkeley Re in Ireland

On May 22, 2025, AM Best announced significant ratings for Berkeley Re Designated Activity Company, a captive reinsurer based in Ireland that primarily serves Mondelez International, Inc., a leading global food and beverage company. The Financial Strength Rating was assigned at B++, categorized as 'Good', while the Long-Term Issuer Credit Rating was set at 'bbb+', also deemed 'Good'. The outlook for these ratings is stable, indicating the agency’s confidence in the financial robustness of Berkeley Re. The ratings reflect several strong factors contributing to Berkeley Re's financial position. AM Best assessed the company’s balance sheet strength as strong, thanks to its risk-adjusted capitalisation being rated at the strongest level according to Best’s Capital Adequacy Ratio (BCAR). This status is further supported by a liquid investment portfolio and low reliance on reinsurance, which are critical advantages in the competitive insurance landscape. However, the assessment is somewhat offset by Berkeley Re’s exposure to potentially significant losses within its property line of business. Berkeley Re’s operational performance has been adequate over time, marked by consistently good but volatile underwriting results. According to AM Best, from 2020 to 2024, Berkeley Re maintained a five-year average combined ratio of 67.6%, suggesting that its underwriting activities have been profitable yet subject to fluctuations. Additionally, the company’s underwriting portfolio is commendably diverse, spanning various lines of business as well as geographical regions, which mitigates risks associated with market fluctuations and economic downturns. The issuance of these ratings reflects both the financial strength of Berkeley Re and the inherent risks associated with its operations. Conducted by a reputable agency like AM Best, such evaluations provide potential investors and stakeholders with crucial insights into the company's stability and operational proficiency. The overall financial outlook for Berkeley Re remains optimistic, given its strategic positioning in the reinsurance sector and its backing from a globally recognized parent. This assessment plays an essential role in enhancing the visibility and credibility of Berkeley Re in the insurance marketplace.