AM Best has revised the outlooks to positive from stable for Canopius US Insurance, Inc. and Bermuda-based Canopius Reinsurance Limited.
At the same time, the rating agency also affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of both entities.
Both Canopius US and Canopius Re are wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies.
According to AM Best, these ratings reflect Canopius’ Every strong balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management.
“The ratings of Canopius US and Canopius Re reflect their strategic importance to and integration within the Canopius group,” AM Best stated.
The positive outlooks reflect the agency’s expectation that Canopius will maintain its profitability at a level commensurate with a strong operating performance assessment, supported by effective cross-cycle underwriting management.
Canopius’ profitability has risen year on year since 2021, with 2025 profit after tax reaching USD 467 million (2024: USD 401 million), equating to a 21% return on equity (2024: 22%), as calculated by AM Best.
Improved underwriting performance since 2021 stems from measures implemented by management, including reduced natural catastrophe exposure and better risk selection via enhanced data.
The business has grown materially over recent years and has benefited from a favourable pricing environment, with solid investment returns supporting recent earnings.
AM Best analysts added: “Canopius’ balance sheet strength is underpinned by its risk-adjusted capitalisation that was at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR).
“Risk-adjusted capitalisation is expected to remain at this level, in line with the company’s capital management framework and supported by its good internal capital generation.”
The group’s balance sheet strength is assessed as strong, largely due to its conservative asset allocation, good liquidity, and prudent reserving strategy.
However, this is moderately offset by moderate leverage at the holding company level, analysts noted.
“Canopius has a well-established business profile as a specialist re/insurer within the competitive Lloyd’s market. The group’s market position benefits from its diversified book of business by product and geography,” AM Best concluded.
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