Prospero Re Exceeds Rating Expectations

We are proud to report that Prospero Re Ltd, our rated reinsurance vehicle in Bermuda, has exceeded rating agency KBRA’s expectations in executing our modified business plan. KBRA has reaffirmed our ‘A’ rating as discussed in the full report, which you can read here. We look forward to further progress in executing our revised business plan in the year ahead. 

In late 2020, Prospero Re received approval from the Bermuda Monetary Authority (BMA) to expand our operating model, allowing us to write both collateralized and non-collateralized [re]insurance, adding an element of leverage and significantly expanding the scope of our investment universe. 

Since the BMA approval, we have continued to strategically shift our portfolio away from what we believe are inadequately priced property catastrophe reinsurance risks to more attractively priced insurance lines. Our broad diversification outside of traditional insurance-linked securities (ILS) continues to differentiate us from our peers and has worked to our advantage in recent high-catastrophe years.