AM Best Assigns Credit Ratings to Cowen Reinsurance S.A.; Places Credit Ratings Under Review With Negative Implications

AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to Cowen Reinsurance S.A. (Cowen Re) (Luxembourg). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications.

The ratings have been placed under review with negative implications due to the uncertainty regarding Cowen Re’s future ownership, given that AM Best does not expect the company to form a part of The Toronto-Dominion Bank’s (TD Bank) long-term plans.

The ratings reflect Cowen Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Cowen Re’s balance sheet strength is supported by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects Cowen Re’s risk-adjusted capitalisation to remain at the strongest level prospectively, supported by low underwriting leverage. An offsetting factor is the company’s limited quality of assets, due to its substantial holdings of intercompany loans and receivables. However, asset quality is expected to improve in 2023, as the company reduces its exposure to intra-group investments and loans.

In 2022, Cowen Re reported a pre-tax loss of USD 5.9 million (2021: USD 19.7 million profit). Since its start of operations in 2016, Cowen Re’s operating performance has been volatile. The cumulative pre-tax result since inception is a USD 6 million loss (as calculated by AM Best), with modest technical losses being offset partially by positive investment returns.

Cowen Re’s business profile assessment of limited reflects the company’s weak market position in a large and highly competitive international reinsurance market. Cowen Re’s gross written premium amounted to USD 24 million in 2022. The company writes non-life, short-tail business globally, with a focus in Europe and emerging markets. Following the company’s acquisition by TD Bank in March 2023, there is uncertainty regarding Cowen Re’s future business plan.

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

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Jose Berenguer, CFA
Senior Financial Analyst
+31 20 308 5429

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310

Victoria Ohorodnyk
Associate Director
+31 20 308 5432

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318

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