AM Best Affirms Credit Ratings of Convex Group Limited’s Subsidiaries
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” (Excellent) of Convex Re Limited (CRL) (Bermuda), Convex Insurance UK Limited (CIL) (United Kingdom), Convex Europe S.A. (CES) (Luxembourg) and Convex Guernsey Limited (CGU) (Guernsey). All four entities are wholly owned subsidiaries of Convex Group Limited (Convex) (Bermuda), the non-operating holding company of the group. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Convex’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings factor in the strategic importance of CRL, CIL and CES to Convex, while CGU’s ratings consider the significant reinsurance support it receives from CRL.
Convex’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Convex receives equity credit in BCAR for subordinated debt and perpetual preference shares. The group’s balance sheet strength is supported further by good liquidity and strong financial flexibility, evidenced by multiple capital raises in recent years, the most recent being USD 600 million of subordinated debt issued in the first quarter of 2026. Convex had a low adjusted financial leverage ratio of 3% at year-end 2025, which included equity credit for hybrid securities, as well as strong interest coverage. Following the recent debt issuance in 2026, adjusted leverage ratios are expected to increase but remain below 10%. An offsetting rating factor is Convex’s material exposure to catastrophe risk and its dependence on reinsurance to manage this; however, this risk is mitigated partially by a reinsurance panel of excellent credit quality.
