AM Best offers view on Pfizer’s Vermont captive Blue Whale
AM Best has affirmed the financial strength rating of A (Excellent) of Blue Whale Re. The outlook of these ratings is stable.
Blue Whale is the Vermont-domiciled captive of global pharmaceutical company Pfizer. It insures or reinsures Pfizer’s international employee benefits and global property exposures, among other coverages.
In recent years of hard market conditions, Blue Whale has participated in small slices of Pfizer’s catastrophe tower, while it also offers capacity for cyber liability coverage when required by hard market pricing.
AM Best described the reinsurance programme as “appropriate and diverse”, and providing “ample coverage” for property exposures.
“AM Best recognises the quality of the reinsurers and the substantial financial resources and assistance available to the captive as part of Pfizer,” it said in a ratings note. “The captive covers low frequency, high severity exposures in which the losses have not compromised its strong operating performance.”
The ratings reflect Blue Whale’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The stable outlooks reflect AM Best’s view that the company will continue to generate strong operating results that engender supportive capitalisation for the ratings.
Additionally, AM Best expects Pfizer’s ability and willingness to support Blue Whale will not change.
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