JUNE 17, 2020 01:56 PM (EDT)

AM Best Affirms Credit Ratings of Reaseguradora America SPC Ltd.

 Salvador Smith
Financial Analyst
+52 55 1102 2720, ext. 109

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


MEXICO CITY - JUNE 17, 2020 01:56 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Reaseguradora America SPC Ltd. (RAM Re) (Cayman Islands). The outlook of these Credit Ratings (ratings) is stable.

RAM Re is a subsidiary of ASSA Compañía Tenedora S.A. and owned ultimately by Grupo ASSA, S.A., a financial services holding company publicly traded on the Panama Stock Exchange.

The ratings reflect RAM Re’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

RAM Re is registered as a segregated portfolio company, licensed as a Class B(iii) insurer under the Cayman Islands’ insurance law, which allows large clients to place proprietary risks through underlying cells.

The ratings reflect RAM Re´s continued strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), sound operating performance, and its affiliation to Grupo ASSA, S.A., which provides synergies and operating efficiencies, as well as parental support and an appropriate ERM framework.

AM Best expects RAM Re to maintain risk-adjusted capitalization levels supportive of its current ratings amid material changes in its business profile, driven by ongoing developments in its segregated portfolio cells. Concerns regarding business volume growth and new portfolio integration, which pressure the company´s capital base, are expected to be offset in the immediate term through the successful implementation of RAM Re’s strategy.

Factors that could lead to positive rating actions include sustained improvements in risk-adjusted capitalization initially supported on the successful materialization of developments concerning RAM Re’s business profile, including its strategy driven by the integration of a new segregated portfolio cell. Factors that could lead to negative rating actions include a deterioration in risk-adjusted capitalization levels driven by an unsuccessful materialization of developments concerning RAM Re’s business profile, including the failed adoption of its strategy attempting the integration of a new segregated portfolio cell.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

  • Alternative Risk Transfer (Oct. 13, 2017)

  • Evaluating Country Risk (Version Oct. 13, 2017)

  • Scoring and Assessing Innovation (Version March 5, 2020)

  • Understanding Universal BCAR (Version June 11, 2020)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best’s Credit Ratings.

  • Previous Rating Date: June 7, 2019

  • Date Range of Financial Data Used: Dec. 31, 2014- May 31, 2020

This press release relates to rating(s) that have been published on AM Best’s website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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AMB# Company Name
055653 Grupo ASSA, S.A.
092776 Reaseguradora América SPC Ltd.