AM Best Assigns Credit Ratings to Soteria Reinsurance Ltd.

AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Soteria Reinsurance Ltd. (Soteria) (Bermuda). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Soteria’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect the ratings lift the company receives from the ultimate parent, FMR LLC.

Soteria’s very strong balance sheet strength assessment is underpinned by its risk-adjusted capitalization, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects Soteria’s risk-adjusted capitalization to remain at the strongest level, prospectively. The company receives support from FMR LLC in the form of capital contributions, operational support and investing expertise. Soteria provides strategic importance to FMR LLC and the U.S. operating insurance entities by providing reinsurance solutions, as well as growing the wider Fidelity organization’s exposure to the insurance space.

Soteria’s operating performance is assessed as adequate. The company currently has a mix of affiliated business assumed from Fidelity Investments Life Insurance Company. These deals include Single Premium Immediate Annuities and Single Premium Deferred Annuities. Soteria’s Bermuda class E license allows it to expand its reinsurance business to unaffiliated counterparties seeking reinsurance solutions of both annuity and life business.

AM Best assesses Soteria’s ERM as appropriate. The company has a formal risk appetite statement and investment guidelines. Soteria complies with regulations set out by the Bermuda Monetary Authority. The company utilizes its relationship with FMR LLC for support in its ERM program.

A positive rating action may occur if there is a sustained improvement in balance sheet metrics. A negative rating action may occur if Soteria becomes less strategically important to the ultimate parent company, FMR LLC, or if there is a material deterioration in balance sheet metrics. AM Best will monitor Soteria’s results closely.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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