Best’s News & Research Service - February 28, 2020 04:09 PM (EST)
AM Best Places Credit Ratings of Ocean International Reinsurance Company Limited Under Review With Developing Implications
- February 28, 2020 04:09 PM (EST)
Mexico City //BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Ocean International Reinsurance Company Limited (Ocean Re) (Barbados).
The Credit Rating (rating) action follows the Feb. 20, 2020, announcement that Ocean Re and Energy Risk Indemnity Reinsurance Inc. (ERI Re) (Barbados) will merge its operations. The transaction has been executed and consummated, with all the required authorizations and permits obtained from Barbados’ Financial Services Commission (FSC) and relevant regulators. Because of the merger, ERI Re became the major shareholder of Ocean Re, without any changes in Ocean Re’s management team.
The under-review status reflects AM Best’s necessity to reassess the financial strength of Ocean Re after the merger, taking into account its corporate structure, balance sheet strength and revised strategy. The developing implications on the under-review status recognizes the ongoing geographical diversification that could derive from the merger as well as potential improvements in its capital position.
AM Best will review any material changes to Ocean Re’s financial profile to assess the impact on its ratings. If there are no material deviations to the company’s projections, the most likely outcome would be an affirmation of the current ratings.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, 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:
- Alternative Risk Transfer (ART) (Version Oct. 13, 2017)
- Evaluating Country Risk (Version Oct. 13, 2017)
- Understanding Universal BCAR (Version May 23, 2019)
- Catastrophe Analysis in AM Best Ratings (Version Oct. 13, 2017)
- Available Capital & Holding Company Analysis (Version 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: Oct. 10, 2019
- Date Range of Financial Data Used: Nov. 30, 2012-Feb. 20, 2020
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.
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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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.