The rating reflects Prospero Re’s strong risk-based capitalization, conservative underwriting leverage, and liquid investment profile, balanced by its limited scale, concentrated premium base, earnings volatility, and exposure to property catastrophe, specialty, and reserve risk. Prospero Re’s 302% BSCR coverage ratio at year-end 2025, lack of financial leverage, and investment portfolio concentrated in cash, cash equivalents, and short-duration AA+ fixed income securities support the rating. The rating also incorporates the strategic benefits Prospero Re receives from the broader Resolute Global Partners ecosystem, including access to sourcing channels, underwriting expertise, capital-management flexibility, and strategic relationships across collateralized reinsurance, US insurance, Lloyd’s specialty insurance, and open-market reinsurance. These strengths are partially offset by the company’s evolving transition toward a rated balance sheet model, which increases…
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