AM Best confirms credit ratings of Ocean International Reinsurance Company Limited

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CITY OF MEXICO– (BUSINESS WIRE) –
AM Best confirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of Ocean International Reinsurance Company Limited (Ocean Re) (Barbados). The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of Ocean Re’s balance sheet, which AM Best considers to be the strongest, as well as its adequate operational performance, neutral business profile and appropriate management of corporate risks.

The stable outlook recognizes the disciplined underwriting of the company to deploy its capital with profitable results in an adverse economic cycle.

Ocean Re is a Barbadosreinsurer, licensed as a class 2 insurance company, which offers a diverse product line around the world with a major presence in Latin America. The Company also offers fully funded facultative reinsurance programs based on expected ultimate losses of the Company’s customers. Its business development strategy clearly identifies an increase in the share of traditional reinsurance in its portfolio, compared to its captive portfolio.

Ocean Re’s regional geographic footprint continues to expand, reaching 111 countries across Latin America and other countries beyond the region. Ocean Re foresees significant growth potential in key markets and regions such as Middle East and North Africa, the Inter-African Conference on Insurance Markets (CIMA) and the Far East, which would continue to diversify the portfolio.

The company’s risk-adjusted capitalization remains at the highest level as measured by Best’s capital adequacy ratio (BCAR) and has benefited from a capital injection received in early 2020 and profitable results until June 30, 2021. AM Best will continue to monitor the strength of Ocean Re’s balance sheet, particularly given the influence its holding company has over it due to its financial leverage and the changing corporate structure.

Ocean Re’s operational performance in 2020 and 2021 translated into a positive net result, due to good levels of premium sufficiency resulting from the nature of its captive activities, as well as an adequate retrocession program for its lines. of traditional reinsurance companies in expansion. So far 2021 is proving to be a year of consolidation, with the company performing well in new markets and successfully expanding its distribution channels.

Negative rating actions could arise as a result of significant changes in risk-adjusted capitalization following large losses or if Ocean Re fails to successfully implement its business strategy. Negative rating actions could also take place in the event of an increase in the financial leverage of the holding company, which puts pressure on the strength of Ocean Re’s balance sheet. Positive rating actions are not planned in the medium term.

AM Best remains the main rating agency for alternative risk transfer entities, with more than 200 such vehicles rated worldwide. For Best’s current credit ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico. For more information, visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

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Eli Sanchez

Associate Director

+52 55 1102 2720, ext. 122

[email protected]

Christophe sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Alphonse Novelo
Senior Director, Analytics

+52 55 1102 2720, ext. 107

[email protected]

Jim peavy
Director, Communications

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best


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