Gard P&I (Bermuda) Ltd.

The stable outlook indicates that we expect Gard will retain its preeminent position in the P&I and marine sectors over the next two years. It will demonstrate this by outperforming its P&I peers in terms of underwriting performance. We also expect Gard's capital adequacy will comfortably exceed our 99.99% threshold over the next two years. We could lower the ratings if Gard's combined ratios on an estimated total call basis consistently exceeded 100% over a prolonged period, or if its underwriting performance lagged the P&I sector's average performance. We could also lower the ratings if the group's risk-based capital adequacy fell consistently below the 99.99% level, which could occur if Gard experienced high investment losses or rapid growth in its

...Gard P&I (Bermuda) Ltd. (Gard or the club) will remain the dominant player in the P&I insurance segment and a significant participant in the marine market more generally. S&P Global Ratings expects that Gard will remain the largest player in the P&I sector, with a market share of close to one-fifth. This strength, combined with the club's ability to make unbudgeted calls on members, influences our selection of the 'a+' anchor. We expect the club to continue to record underwriting profits over 2024-2026, assuming more normalized pool claims from other clubs. We expect that Gard will continue to return premiums to its members at the same rate, while maintaining capital in excess of our 99.99% benchmark in our risk-based model. Although the club is more diversified than any of its P&I peers, writing both hull and energy covers alongside the core P&I offering, it remains largely undiversified. Most peers at the 'A+' level have more product diversification, with many writing both life and nonlife...

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