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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Affirms Credit Ratings of Sigurd Rück AG

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Sigurd Rück AG (Sigurd) (Switzerland). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Sigurd’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 ratings also factor, in the form of drag, Sigurd’s association with its parent company, Saipem S.p.A. (Saipem). Sigurd is a captive reinsurer of Saipem and a key element of the Saipem group’s risk management framework.

Sigurd’s very strong balance sheet strength assessment is underpinned by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects Sigurd’s risk-adjusted capitalisation to remain comfortably at the strongest level, supported by low net underwriting risk and good earnings retention. Moderate exposure to potential catastrophe losses is partially mitigated by a comprehensive retrocession programme with retrocessionaires of superior credit quality. Sigurd is exposed to concentration and credit risk due to a cash-pooling agreement with the Saipem group, which acts as a partially offsetting factor in the assessment. As of 31 December 2024, the funds that Sigurd allocated to the cash-pooling with Saipem represented 49% and 60% of its total assets and capital and surplus, respectively.

Sigurd has a record of strong operating performance, evidenced by a five-year (2020-2024) weighted average return-on-equity and combined ratio of 11.9% and 65.6%, respectively (as calculated by AM Best). Profitability has been supported by a low and stable expense ratio and a good, albeit volatile, loss ratio.

Sigurd’s business profile assessment benefits from its role as an important risk management tool for its parent, along with moderate geographic and product diversification derived from Saipem’s wide-ranging commercial activities. Sigurd is expected to remain an important risk management tool for the foreseeable future.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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