AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of 'a-' (Excellent) of
The outlook for these Credit Ratings (ratings) is stable.
The ratings reflect WISI's balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings take into account the support provided by WISI's parent,
WISI's risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), improved to the very strong level at year-end 2021. However, AM Best expects WISI's BCAR to decline for 2022, driven mainly by capital contraction due to reserve strengthening for its core lines of business as well as sizeable unrealized loss on the fixed income portfolio. WISI plans the near-term capital growth to be supported through positive earnings and no dividends to the parent company.
AM Best acknowledges the company's considerable financial flexibility through a parent company supported by its commercial paper program, parent company cash and a revolving credit facility. Furthermore,
WISI's core operations in the protected cell - Federal Employees Health Benefits Program (FEP) premiums assumed from
WISI is a
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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