AM Best Affirms Credit Ratings of Eureka-Re SCC
- August 28, 2026 01:34 PM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Eureka-Re SCC (Eureka) (Barbados). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Eureka’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The stable outlooks reflect AM Best’s expectation that Eureka’s overall balance sheet strength will continue to benefit from appropriate ERM practices and positive operating performance.
Eureka, established in Barbados in 2009, is a regional reinsurer in Latin America. The company underwrites mostly lower layers of facultative programs, originated through managing general agents. While most of the premium generated by the company is sourced from Latin America, it has diversified internationally, investing in seasoned personnel and systems. AM Best assesses Eureka’s business profile as neutral, recognizing the company’s extensive geographic diversification and its capacity to assume risks; AM Best will continue to monitor these assumed risks and the company’s performance in newer territories.
AM Best assesses Eureka’s balance sheet strength at the very strong level, as its increasing capital base continues to be driven by positive bottom-line results, limited risk takings and a policy to reinvest earnings. The company is subject to catastrophe-related losses, and as a result, has implemented a stringent risk modeling procedure and adjusted its retentions according to its experience, further enhanced by a structured multi-layer reinsurance program with a high-quality panel of reinsurers, protecting the company in case of unexpected events. Investments are set to match insurance obligations, with a proprietary portfolio aimed at achieving yield and developing business opportunities. AM Best will continue to monitor these investments and the impact on the company’s risk-adjusted capitalization.
AM Best assesses Eureka’s operating performance as adequate, as it has reported positive bottom-line results of USD 13.82 million as of December 2025, reflecting a 61% increase against 2024. These results reflect Eureka’s continuous strengthening of its ERM practices and adjustments in underwriting and retentions that have adapted successfully to the evolving business landscape.
Negative rating actions could take place if Eureka’s risk-adjusted capitalization diminishes due to undertaking higher risks mainly in underwriting or investing. Positive rating actions could take place in the medium term if there is a positive trend in the company’s operating performance backed by stability in net results and quality of underwriting.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Aug. 29, 2024), 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:
· Evaluating Country Risk (Version June 6, 2024)
· Understanding Global BCAR (Version July 16, 2026)
· Catastrophe Analysis in AM Best Ratings (Feb. 27, 2026)
· Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 2025)
· Scoring and Assessing Innovation (Version Feb. 20, 2025)
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, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings.
· Previous Rating Date: Aug. 28, 2025
· Initial Rating Date: Feb. 24, 2021
· Date Range of Financial Data Used: Dec. 31, 2019-Dec. 31, 2025
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