AM Best confirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of “a-” (excellent) of
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
Ocean Re’s regional geographic footprint continues to expand, reaching 111 countries across
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
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.
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Source: AM Best