Best’s News & Research Service - August 28, 2025 02:40 PM (EDT)
AM Best Upgrades Credit Ratings of Reaseguradora Delta, S.A. and Reaseguradora Delta, C.A.
- August 28, 2025 02:40 PM (EDT)
//BestWire// - AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings to “a-” (Excellent) from “bbb+” (Good) of Reaseguradora Delta, S.A. (Delta Panama) (Panama City, Panama) and Reaseguradora Delta, C.A. (Delta Venezuela) (Caracas, Venezuela). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.
The ratings of Delta Panama reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The upgrading of Delta Panama’s ratings follows a favorable trend in Delta Panama’s underwriting metrics and profitable results. The company’s operating performance is characterized as profitable; positive bottom-line results were achieved in all business lines during 2024, with an overall operating ratio of 60%. While investment income contributes to Delta Panama’s earnings, profitability is fully achieved through technical results, rendering premium sufficiency levels that compare well to the strong assessment for the last couple of years. AM Best expects Delta Panama to maintain profitable results while implementing its growth strategy.
The stable outlooks reflect AM Best's expectation that Delta will maintain favorable underwriting metrics and profitable results that continue strengthening the company's capital base.
Delta Panama’s very strong balance sheet strength assessment recognizes the company’s adequately matched obligations and risk appetite, as well as its shareholders’ commitment to strengthening its capital base, reflected in Delta Panama’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and favorable net underwriting leverage metrics.
Founded in Panama in 2010, Delta Panama offers treaty and facultative reinsurance for several lines of business, including fire, surety, construction and engineering, auto, marine aviation and transport, personal liabilities, robbery and personal accidents. Most of its portfolio is composed of treaty contracts (59%), while facultative reinsurance accounts for 41%. Delta Panama is diversified geographically, as the company underwrites business in Ecuador, Panama, Dominican Republic and Paraguay, and is entering into new territories such as Mexico, Guatemala and Honduras. The company’s distribution channels include brokers and alliances with other reinsurers, as well as a managing general agent established in Miami by Delta Panama’s shareholders. AM Best assesses the company’s business profile as neutral.
Delta Panama’s ERM is considered appropriate, as it is well-integrated into its operations; risk appetite and tolerance are well-defined, and the company takes advantage of its pricing model and management team, which has over 20 years of experience in the Latin American market. The company has a sound excess of loss retrocession program in place with highly rated reinsurers that have an excellent level of security.
Delta Venezuela is a reinsurance company founded in Caracas, Venezuela, in 1963. The company has shared top management and major shareholders with Delta Panama since 2010; it offers treaty and facultative reinsurance for several lines of business, including fire, surety, construction and engineering, auto, marine aviation and transport, personal liabilities, robbery and personal accidents. The company underwrites premiums in Venezuela and Ecuador through shared distribution channels.
Delta Venezuela’ risk-adjusted capitalization stands at the strongest level, as measured by BCAR, and the company is well-protected against the economic volatility present in Venezuela through its conservative investment strategy. The company’s operating performance is characterized as being profitable; positive bottom-line results have been achieved through technical results in all lines of business during 2024. Delta Venezuela receives substantial reinsurance support in terms of underwriting, reinsurance protection and ERM from Delta Panama, through a comprehensive 90%-10% quota share contract.
Negative rating actions could occur if the company's capital base erodes due to cash withdrawals or a deterioration in operating results, which would debilitate risk-adjusted capitalization to a point no longer supportive of the current assessment. Positive rating actions could take place if the capital volume of Delta Panama, continues to grow, while maintaining its strongest level of risk-adjusted capitalization.
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)
- 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.
- Previous Rating Date: Aug. 29, 2024
- Initial Rating Date: Aug. 10, 2022
- Date Range of Financial Data Used: Dec. 31, 2019- June 30, 2025