Best’s News & Research Service - June 12, 2025 01:55 PM (EDT)
AM Best Revises Outlooks to Positive for Reaseguradora Santo Domingo, S.A.; Affirms Credit Ratings
- June 12, 2025 01:55 PM (EDT)
//BestWire// - AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Reaseguradora Santo Domingo, S.A. (REASANTO) (Dominican Republic).
The Credit Ratings (ratings) reflect REASANTO’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The rating outlook revisions reflect AM Best’s expectation that REASANTO will continue with its positive trend in operating performance, reflecting prudent underwriting practices and profit generation capabilities.
REASANTO is a reinsurance company founded in 1973 in Santo Domingo, Dominican Republic. The company focuses its product offerings on the fire and allied business lines. In 2024, the company started underwriting business in Central America following its plan to expand operations to other countries; however, business continues to be concentrated in the Dominican Republic. The company’s business profile is considered limited given its geographic and business line concentration. AM Best will continue to monitor the deployment of REASANTO’s business strategy outside the country.
REASANTO’s balance sheet strength assessment of strong is based on its strongest level of risk-adjusted capitalization in 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). The company continues to adjust its exposures to probable maximum losses by actively managing its reinsurance program and aiming to reduce volatility in its capital base. Mitigating these factors is a conservative investment strategy and an adequate reinsurance panel.
The company’s operating performance is assessed as adequate, driven by consistent net income that is backed by contained expenses and claims targeted to diminish deviations in REASANTO’s budget and improve its underwriting quality. The company’s ERM is considered appropriate with defined policies and procedures to maintain risk tolerance levels. These are well-adhered to and reviewed periodically.
Positive rating actions could occur if the company's underwriting performance and profit generation capabilities continue to strengthen, supporting the current level of risk-adjusted capitalization.
Negative rating actions could take place if the company's risk-based capital erodes to a level no longer supportive of the current ratings resulting from a sharp deterioration in operating performance.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Aug. 29, 2024), 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 and Insurance Holding Company Analysis (Aug. 15, 2024)
- Understanding Global BCAR (Aug. 1, 2024)
- Evaluating Country Risk (June 6, 2024)
- Catastrophe Analysis in AM Best Ratings (Feb. 8, 2024)
- Scoring and Assessing Innovation (Feb. 20, 2025)
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, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings
- Previous Rating Date: July 3, 2024
- Initial Rating Date: July 3, 2024
- Date Range of Financial Data Used: December 31, 2019-March 31, 2025
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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.