OCTOBER 07, 2022 11:27 AM (EDT)
AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of IRB-Brasil Resseguros S.A.
|Guilherme Monteiro Simoes |
Senior Financial Analyst
+1 908 439 2200, ext. 5301
Steven Chirico, CPA
+1 908 439 2200, ext. 5087
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5098
FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 07, 2022 11:27 AM (EDT)
AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of IRB-Brasil Resseguros S.A. (IRB) (Rio de Janeiro, Brazil) [B3: IRBR3]. The outlook assigned to these Credit Ratings (ratings) is negative.
The ratings reflect IRB’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.
Following the successful completion of the recapitalization stock offer announced on Sept. 1, 2022, which restored IRB’s capital position, its ratings were removed from under review with negative implications and affirmed, and the rating outlooks were assigned as negative. The negative outlooks point to IRB’s continued adverse operating performance, caused by unfavorable underwriting activities which, in turn, stem from IRB’s legacy business put in run-off and a shock loss from its agricultural line of business. AM Best will continue to monitor IRB’s management actions closely to revert operating performance trends and their effects on the company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR).
This press release relates to Credit Ratings that have been published on AM Best’s website. For all 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. 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.