OLDWICK: AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” to Oceanview Life and Annuity Company and its reinsurer affiliate, Oceanview Reinsurance Ltd.

The outlook assigned to these Credit Ratings (ratings) is stable. Both companies are ultimately owned by Oceanview Holdings Ltd.

The ratings of Oceanview Life reflect its balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings of Oceanview Re reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.

The ratings of Oceanview Life and Oceanview Re are anchored in the strength and quality of their balance sheets and overall liquidity sources. As a new company formation, AM Best requires a level of conservatism to be built into initial capital levels, and comfort is taken in the two companies’ material level of initial capital, which is approximately $100 million for each entity on day one.

Further supporting the balance sheet assessments is the material committed equity capital to the ownership structure totaling $1 billion. Finally, AM Best’s final balance sheet assessment is further supported by additional capital and liquidity alternatives available to the company. AM Best also has assessed the quality of management to be experienced in the intended areas of focus. With respect to Oceanview Re, 100% of its capital qualifies as Tier 1 under Bermuda Solvency II equivalent regulatory system.

Additionally, AM Best stress tests of the companies also demonstrate a sufficient capital buffer to cover higher than projected asset impairments and excessive growth. The company also will apply to have access to Federal Home Loan Banks, further enhancing its liquidity profile.

Partially offsetting these positives is the concentrated asset allocation strategy and competitive product space in which Oceanview Life will be competing. AM Best therefore re-emphasizes the importance of a capital buffer, and additional equity commitments, from the start. Although concentrated, AM Best expects asset quality to be rated 100% investment grade. Products will include a portfolio of fixed annuity solutions, distributed through a diverse but untested network, which will place the companies in a highly competitive space from which to execute on its strategy.