AM Best


NOVEMBER 11, 2022 02:04 PM (EST)

AM Best Assigns Credit Ratings to Global Protection Reinsurance Ltd.


CONTACTS:
 Ricardo Rodríguez
Financial Analyst
+52 55 11022720, ext. 139
ricardo.rodriguez@ambest.com

Alfonso Novelo
Senior Director, Analytics
+52 55 11022720, ext. 107
alfonso.novelo@ambest.com

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

Al Slavin
Communications Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

FOR IMMEDIATE RELEASE

MEXICO CITY - NOVEMBER 11, 2022 02:04 PM (EST)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) to Global Protection Reinsurance Ltd. (GPR) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable.

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

The stable outlooks are based on AM Best’s expectation that GRP will maintain its balance sheet strength assessment, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as maintain stable operating performance and organic growth over the intermediate term amid ongoing strategic initiatives implemented by management.

GPR has strengthened its capital base steadily by reinvesting its earnings. The balance sheet assessment of strongest also factors in the company’s ability to generate profit, taking advantage of the synergies within the group.

The company historically has shown positive bottom-line results; GPR’s operating performance has been underpinned by positive technical results as the company pursues new business opportunities inside its group. AM Best expects the company to maintain premium sufficiency and steady trends in its profitability ratios.

AM Best assesses the company’s business profile as limited; GPR concentrates its efforts in reinsuring the group’s facultative risk, limiting its growth inside the markets where the group operates, such as Honduras, Nicaragua and Panama. The company is based in Barbados and fully owned by Global Protection Holding Corp., a subsidiary of Grupo Financiero Ficohsa, S.A.

AM Best considers GPR’s ERM to be appropriate as it is well-integrated into its operations. The company follows the group’s risk policies and appetite and adheres to the investment policies of its affiliates that were approved previously by management.

Negative rating actions could take place if there is a deterioration in the company’s risk-adjusted capitalization due to major capital outflows, or macroeconomic conditions, in the markets where it has presence, may affect its operating performance.

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 www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


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

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

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

  • Understanding Global BCAR (Version June 30, 2022)

  • Alternative Risk Transfer (ART) (Oct. 13, 2017)

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, 2017-Dec. 31, 2021

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 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.


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AMB# Company Name
071616 Global Protection Reinsurance Ltd.