Best’s News & Research Service - June 20, 2025 04:35 PM (EDT)
AM Best Assigns Credit Ratings to Interplus Re Limited
- June 20, 2025 04:35 PM (EDT)
//BestWire// - AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of “bb+” (Fair) to Interplus Re Limited (Interplus) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Interplus’ balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Interplus is a reinsurance company incorporated under the Laws of Barbados on Aug. 11, 2021, as a Class 2 License Insurance Company. Interplus is 98% owned by INTEHO Limited, based in Barbados. Interplus offers reinsurance products mainly focused on property business, which accounts for almost 79% of its gross written premium portfolio, followed by surety and credit lines (12%), accidents and health (8%) and the remaining (less than 1%) in life. Two thirds of the businesses underwritten by Interplus originates in Latin America and the Caribbean, with moderate concentration in Ecuador (29% of gross written premiums as of December 2024). The remaining 34% of its portfolio is distributed across Asia (25%), Africa (5%), Europe (4%) and Oceania (less than 1%). Interplus reached USD 34.9 million in gross written premiums during 2024, its third year of operation. AM Best assesses Interplus’ business profile as limited due to the recent creation of the company and its small size within a highly competitive global market.
Interplus’ balance sheet strength is assessed as strong, reflecting the expected volatility of a startup company, its developing investment strategy and adjusting risk profile. The company’s capital base has grown since its foundation, to USD 25.1 million as of December 2024, reflecting two years of positive net results and shareholder support from significant capital infusions. AM Best expects Interplus to continue strengthening its capital base through profitable results and prudent capital management.
Interplus reported positive bottom-line results of USD 16 million as of December 2024. Reserve adjustments benefited technical results, allowing for a combined ratio of 32%, well within premium sufficiency levels. AM Best expects Interplus to remain profitable through adequate risk selection and stable expenses.
The stable outlooks reflect AM Best's expectation that Interplus will continue strengthening its capital base, through prudent capital management and profitable results, to sustain its business plan to maintain current rating levels.
Negative rating actions could take place if Interplus’ operating performance deteriorates to a point no longer supportive of the adequate assessment and losses further weaken the company's balance sheet strength. Positive rating actions could take place if Interplus is able to consistently strengthen its capital through reinvestment of earnings or capital infusions, demonstrating stability at levels that support the current ratings, according to Best’s Capital Adequacy Ratio (BCAR).
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:
- Evaluating Country Risk (Version June 6, 2024)
- Understanding Global BCAR (Version Aug. 1, 2024)
- Catastrophe Analysis in AM Best Ratings (Version Feb. 8, 2024)
- Available Capital and Insurance Holding Company Analysis (Version Aug. 15, 2024)
- Rating New Company Formations (Version Sept. 5, 2024)
- Scoring and Assessing Innovation (Version 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.
- Initial Rating Date: June 20, 2025
- Date Range of Financial Data Used: Dec. 31, 2022-Dec. 31, 2024
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