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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:
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.
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.
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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.