AM Best Affirms Credit Ratings of R.V.I. Guaranty Co., Ltd. and R.V.I. America Insurance Company
OLDWICK, N.J., October 30, 2026--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of "a-" (Excellent) of R.V.I. Guaranty Co., Ltd. (Bermuda), and its subsidiary, R.V.I. America Insurance Company (Delaware) (collectively known as RVI). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect RVI's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
RVI's risk-adjusted capitalization level, high-credit-quality investment portfolio and low dependence on reinsurance support AM Best's balance sheet strength assessment of strongest. AM Best assesses RVI's risk-adjusted capitalization at the strongest level on base and stress scenarios, as measured by Best's Capital Adequacy Ratio (BCAR). The risk-adjusted capitalization supports the significant premium growth RVI has experienced in the property/casualty (P/C) reinsurance lines in 2025. RVI is affiliated with Group 1001 Insurance Holdings, LLC (Group 1001), which recently has been the subject of a federal regulatory investigation focusing on a review of affiliated and related party disclosures. RVI's balance sheet strength has benefited historically from Group 1001's expertise in areas such as investment, risk management, liquidity management and business development. However, RVI's balance sheet strength largely derives from its own attributes rather than the attributes of its affiliates with separate governance, management processes and independent asset management, mitigating potential risk posed by Group 1001.
AM Best assesses RVI's operating performance as adequate. In 2025, RVI achieved a combined ratio below 100% while also growing its premium volume. The premium volume growth was driven by RVI's expansion into traditional P/C reinsurance. Net investment income composed a significant proportion of overall net income in 2025.
The high product risk associated with RVI's residual value insurance segments has driven the limited business profile assessment because those segments are correlated highly with the broader macroeconomy and subject to a low-frequency and high-severity claims profile. However, certain features of RVI's residual value insurance business serve as partial mitigants to the product risk: a leading market position, little competition, high client retention rate and geographical spread. In 2025, RVI started providing residual value insurance in the passenger vehicle space in the UK. RVI's significant expansion into traditional P/C reinsurance may provide additional beneficial diversification in the future if the expansion demonstrates a track record of profitability.