AM Best

AM Best Revises Outlooks to Positive for Eureka-Re SCC


Elí Sánchez
Director, Analytics
+52 55 1102 2720, ext. 122

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

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

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


MEXICO CITY - MAY 19, 2023 11:38 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Eureka-Re SCC (Eureka) (Barbados).

The outlook revisions to positive reflect AM Best’s expectation that the overall balance sheet strength of the company will continue to benefit from improved underwriting and investment risk selection and positive bottom-line results.

The Credit Rating (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.

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 premium taken by the company is sourced from Latin America, the company has diversified internationally, underwriting almost half of its business outside the region. Eureka’s business profile is assessed as neutral, recognizing the company’s evolving geographical diversification and its capacity to take risks; AM Best will continue to monitor the company’ performance in newer territories and assumed risks.

AM Best assesses Eureka’s balance sheet strength at the very strong level, as the availability and quality of its capital are well-positioned against the company’s risk profile, which has become more diverse with positive impacts through the years. The company is subject to catastrophe-related losses, and as a result, has adjusted its retentions according to its experience, with a high-quality panel of reinsurers. Investments are set to match insurance obligations, with a proprietary portfolio aimed to achieve yield and develop business opportunities. AM Best will continue to monitor those investments and their impact on the risk-adjusted capitalization of the company.

AM Best assesses Eureka’s operating performance as adequate, as the company sustained profitable performance in 2022 through its technical capacities, supported by its investment income. These results reflect Eureka’s continuous adjustments in underwriting and retentions that adapt to the evolving business landscape.

Positive rating actions could take place in the medium term if balance sheet strength continues to benefit from greater diversification in risks undertaken by Eureka. Negative rating actions also could occur if the equity-focused investment strategy pressures risk-adjusted capitalization of the company to levels not supportive of the current ratings. Negative rating actions also could take place if volatility in Eureka’s operating performance affects the bottom-line results of the company, and ultimately, its risk-adjusted capitalization.

The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), 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

Key insurance criteria reports utilized:

  • Evaluating Country Risk (Version May 4, 2023)

  • Understanding Global BCAR (Version June 30, 2022)

  • Catastrophe Analysis in A.M. Best Ratings (March 10, 2023)

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

  • Scoring and Assessing Innovation (Version Feb. 27, 2023)

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: March 30, 2022

  • Date Range of Financial Data Used: Dec. 31, 2017-Dec. 31, 2022

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.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
074630 Eureka-Re SCC