NFG SA (“NFG”) today addressed the press release issued by AM Best concerning NFG’s asset base and implications for its wholly owned investment in Newpoint Reinsurance Company Limited (NPRE), an independently managed (re)insurer. NFG respectfully acknowledges the recent update from AM Best regarding the basis of withdrawal of its ratings for NPRE.
Based on discussions between NPRE and AM Best, the decision stemmed from AM Best’s methodological limitations in assessing the asset structure and capital model of NFG. This assessment does not reflect any concerns regarding NPRE’s financial health or performance.
AM Best’s final assessment confirmed the very strong balance sheet of NPRE. The company maintains a robust financial status, underscored by strong capitalization and consistent profitability.
Keith D. Beekmeyer, Chairman and CEO of NFG, commented,
“The unique and progressive financial structures we have implemented at NFG present a new paradigm that traditional rating methodologies at AM Best were not fully prepared to evaluate. We remain financially resilient, supported by our solid capitalization and ongoing profitability.”
In response to AM Best’s decision, Newpoint Reinsurance Company Limited (NPRE) has initiated engagements with alternate rating agencies that employ methodologies more suited to assess the asset structure of NFG. Both NFG and NPRE remain independently committed to transparently and accurately representing their financial stability within their respective markets. NPRE is confident that the result will provide a true reflection of NPRE’s strength and value.
Beekmeyer added,
“We are proactive in our approach and remain positive about our future. This transition allows us to collaborate with partners who appreciate the depth of our innovation in financial management.”
NFG and NPRE will continue to keep their stakeholders informed as they navigate through this transition. Their leadership team appreciates the ongoing support from partners and clients and remains committed to demonstrating continued excellence in the global reinsurance market.
