AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Canopius US Insurance, Inc. (Canopius US) (Wilmington, DE) and Canopius Reinsurance Limited (Canopius Re) (Bermuda). Both entities are wholly owned subsidiaries of Canopius Group Limited (Canopius) (Jersey), the non-operating holding company of the Canopius group of companies.

The ratings reflect Canopius’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings of Canopius US and Canopius Re reflect their strategic importance to and integration within the Canopius group.

The positive outlooks reflect AM Best’s expectation that Canopius will maintain its profitability at a level commensurate with a strong operating performance assessment, supported by effective cross-cycle underwriting management.

Canopius’ profitability has increased year on year since 2021, with a profit after tax of USD 467 million reported in 2025 (2024: USD 401 million), equating to a return on equity of 21% (2024: 22%) (as calculated by AM Best). Improving underwriting performance has been observed since 2021, attributable to measures implemented by management, including reducing the group’s exposure to natural catastrophe events and improving risk selection through enhanced data quality. The business has grown materially over recent years and has benefited from a favorable pricing environment. Recent earnings have been supported by solid investment returns.

Canopius’ balance sheet strength is underpinned by its risk-adjusted capitalisation that was at the strongest level at year-end 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). Risk-adjusted capitalisation is expected to remain at this level, in line with the company’s capital management framework and supported by its good internal capital generation. The group’s balance sheet strength assessment considers its conservative asset allocation, good liquidity and prudent reserving strategy, although is offset partially by moderate leverage at the holding company level.

Canopius has a well-established business profile as a specialist (re)insurer within the competitive Lloyd’s market. The group’s market position benefits from its diversified book of business by product and geography.

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