MARCH 08, 2023 10:15 AM (EST)
AM Best Removes From Under Review With Developing Implications, Upgrades Credit Ratings of Genesis Global Insurance (SAC) Ltd.
|Olga Rubo, FRM|
Senior Financial Analyst
+52 55 1102 2720, ext. 134
Senior Director, Analytics
+52 55 1102 2720, ext. 107
Manager, Public Relations
+1 908 439 2200, ext. 5159
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
FOR IMMEDIATE RELEASE
MEXICO CITY - MARCH 08, 2023 10:15 AM (EST)
AM Best has removed from under review with developing implications and upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Genesis Global Insurance (SAC) Ltd. (Genesis) (Nassau, Bahamas). The outlook assigned to these Credit Rating (ratings) is stable.
The ratings reflect Genesis’ strategic importance as a subsidiary of La Colonial, S.A. - Compañía de Seguros (La Colonial) that on a consolidated basis has a balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating upgrades reflect the company’s affiliation with its ultimate parent company, La Colonial, which is one of the leading insurers in the Dominican Republic, supported by a strong parental guarantee, in place since September 2022. Genesis also is integrated in all core processes and ongoing strategic initiatives of the group. Offsetting these positive factors is the inherent risk of a startup company implementing its business plan, as well as distribution channel and product concentration.
Genesis is a startup reinsurance company 100% owned by Altos International LLC, which in turn is owned fully by La Colonial. Genesis’ main business purpose is to retain risk exposures that currently are transferred to the market or retained by La Colonial. Genesis’ capacity is handled through La Colonial’s reinsurance broker, Wahr Re.
Genesis offers general insurance, including the following risks: motor vehicle, property and liability. Due to the nature of the new company’s strategy, there is concentration in a single distribution channel, and exposure to catastrophe insurance.
Genesis is considered part of La Colonial’s group rating unit due to the expectation that La Colonial will support Genesis to the full extent of its financial strength. This is reflected by the strong parental guarantee and explicit capital support, as well as Genesis’ strategic importance to the group as a vehicle to diversify operations outside the Dominican Republic.
Positive rating actions are not expected in the medium term. If there are negative rating actions taken on La Colonial, as a result of erosion of the capital base, either due to negative operating performance or changes in the macroeconomic environment that adversely impact the company’s operations, or any major changes in La Colonial’s capital base, including significant dividends or capital outflows, that diminish AM Best’s view of the company’s balance sheet strength, it would result in negative rating actions taken on Genesis.
A change in AM Best’s perception regarding the strategic importance of Genesis to the group also could impact Genesis’ ratings.
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.
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.