AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Blue Whale Re Ltd. (Blue Whale) (Burlington, VT). The outlook of these Credit Ratings (ratings) is stable.
AM Best said the ratings reflect Blue Whale’s balance sheet strength, which its analysts assess as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The ratings also reflect Blue Whale’s function as the only captive insurer for Pfizer Inc., a global pharmaceutical company. As Blue Whale insures or reinsures Pfizer’s global property exposures, it plays a strategic and critical role in Pfizer’s overall ERM in protecting the Pfizer enterprise’s assets, according to AM Best.
“Blue Whale provides coverages with ample limits with substantial retentions, augmenting significant reinsurance capacity supporting its obligations. Nonetheless, the reinsurance program is appropriate and diverse, providing ample coverage for all its lines of business,” he ratings agecy stated.
AM Best said it recognizes the “quality of the reinsurers and the substantial financial resources and assistance” available to the captive as part of Pfizer.
AM Best said the captive’s operating performance remains favorable when compared with its peers with low average loss and minimal expense ratios.
Blue Whale is a wholly owned captive insurance subsidiary of Pfizer, created to insure or reinsure specific risks of its parent organization. In recent years of hard market conditions, Blue Whale has participated in small slices of its catastrophe tower as an economic efficiency for the Pfizer enterprise. It also offers capacity for cyber liability coverage when required by hard market pricing.
Pfizer has 10 manufacturing sites and two distribution centers in the U.S. located in nine different states. Globally it has a total of 37 manufacturing sites.
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