risk management


Excellent credit ratings for Aspida Life Re – The Royal Gazette

  • May 18, 2023

Created: May 02, 2023 07:07 AM

AM Best reports that Aspida Life Re, at Victoria Place in Hamilton, has a very strong balance sheet.

AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” (Excellent) of Bermudian-based Aspida Life Re Ltd and Aspida Life Insurance Company of North Carolina.

The outlook of these credit ratings is stable.

The ratings reflect Aspida Re’s and Aspida Life’s balance sheet strength, which AM Best assesses as very strong, as well as their adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of Aspida Re and Aspida Life consider the strength of their balance sheets and overall liquidity sources, which have been bolstered by significant capital contributions from Ares Management Corporation, a publicly traded, leading global alternative investment management firm with over $350 billion of assets under management as of December. 31, 2022.

AM Best expects additional capital contributions from Ares and other third-party investors to fund the current growth strategy of continued writing of retail annuity business at Aspida Life and acquiring new blocks of business and entering new reinsurance flow deals through Aspida Re.

Aspida Re currently maintains the strongest level of risk-adjusted capitalisation, as measured by Best’s capital adequacy model, while Aspida Life’s BCAR scores are above the level required for an assessment of very strong.

Aspida Re has expanded its business profile over the past year with several new block acquisitions and reinsurance flow deals, including one with a prominent Japanese life insurance company.

While GAAP accounting rules have resulted in significant volatility in reported earnings, the underlying profitability of Aspida Re’s blocks of business have generally been favourable and interest rate spreads have improved with the rise in investment yields and the repositioning of investments

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Montana Ag Network: Importance of crop insurance

  • July 5, 2022

SUNBURST – After extreme weather conditions have troubled Montanans over the past few years, farmers and insurance agencies across the state stress how critical it is for farmers to acquire crop insurance.

According to the MSU Extension Office, nearly 62% of Montana is farmland. As parts of the state continue to experience drought-like conditions, the need for crop insurance has increased as low crop yields and fire danger become more probable.

Gary Hielig Jr., Senior VP at Rain and Hail Insurance, oversees the crop insurance claims of 7 different states. He noted that last year “Montana was ranked with the highest loss ratio of all states. There was $566 million of claims paid out in the state of Montana last year through different approved insurance providers.”

Hielig stated that around 90% of eligible US farmland is insured.

“They paid their premiums in the years where they did have losses and the program worked really well for them in the year they did have claims so it’s doing what it intended to do,” he said.

Crop insurance helps protect farmers if they have a low crop yield or when the price of their crop is low. Farmers pay a premium and protection will be provided on a corresponding level, much like other insurance. This helps ensure survival of the farm business as their profit is protected.

Nate Aschim, a fourth-generation farmer, commented on the value of crop insurance in his own agricultural community of Sunburst, “with the way the weather’s been the last few years I think a lot of guys would’ve been up against it or have had to fold the tents probably without insurance.”

Korey Fauque of KW Insurance backs this claim up. He noted that out of 300 different farmers, all but a handful paid out

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