AM Best


AM Best Assigns Credit Ratings to Eureka-Re SCC


CONTACTS:

Elí Sánchez
Associate Director
+52 55 1102 2720, ext. 122 +
eli.sanchez@ambest.com

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107
alfonso.novelo@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

MEXICO CITY - FEBRUARY 24, 2021 03:32 PM (EST)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” to Eureka-Re SCC (Eureka) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Eureka’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The stable outlooks reflect AM Best’s expectation that Eureka’s strategy will continue to reflect a more stable financial performance in upcoming years, especially in regard to stabilization of the company’s operating performance.

Eureka, established in Barbados in 2009, is a Latin American regional reinsurer. The company underwrites mostly lower layers of facultative programs, originated through managing general agents. While most of the premium taken by the company is in Latin America, the company has been able to diversify internationally, underwriting almost 30% of its business outside the region. AM Best views Eureka’s business profile as neutral, recognizing the company’s capacity to take risks but also aware of the need to see the full evolution of the company’s strategy in terms of geographical diversification and overall corporate structure.

AM Best assesses Eureka’s balance sheet strength at the strongest level, as the availability and quality of its capital are well-positioned against the company’s risk profile. The company is subject to catastrophe events and has adjusted its retention and reinsurance program according to its experience, with a high quality panel of reinsurers. Investments are concentrated mostly in fixed income aimed to match insurance obligations, with a proprietary portfolio aimed to achieve yield.

AM Best assesses Eureka’s operating performance as adequate, as the company has been profitable through its technical capacities and supported by its investment income. Such results reflect the adjustment in underwriting and retention that took place after 2017. AM Best will remain vigilant of the company’s performance into a longer trend, as economic activity recovers in the region and its strategy continues to be implemented in 2021.

Negative rating actions could take place if volatility in Eureka’s operating performance affects the bottom-line results of the company, and ultimately, its risk-adjusted capitalization. Negative rating actions also could occur if the company’s risk appetite exceeds the capabilities of its capital, according to AM Best’s BCAR, mainly in underwriting or investing activities.

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:


  • Best’s Credit Rating Methodology (Version Nov. 13, 2020)

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

  • Understanding Universal BCAR (Version June 11, 2020)

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

  • Scoring and Assessing Innovation (Version March 5, 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: Not Rated

  • Date Range of Financial Data Used: Dec. 31 2015 – Sept. 20, 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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.


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AMB# Company Name
074630 Eureka-Re SCC