Best’s News & Research Service - December 18, 2025 11:57 AM (EST)
AM Best Affirms Credit Ratings of Patria Re (US), Inc.
- December 18, 2025 11:57 AM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Patria Re (US), Inc. (Patria US) (Charleston, SC). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Patria US’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The stable outlooks reflect the support Patria US receives from its group, which translates into capital contributions when required, as well as profitable business cessions to back up growth, given the strategic importance of the entity.
The ratings also recognize Patria US’ affiliation and strategic importance to its ultimate parent, Peña Verde, S.A.B. (Peña Verde), a leading group in Mexico’s insurance and reinsurance industries, which provides synergies and operating efficiencies. The ratings also reflect the support received from its sister company, Reaseguradora Patria, S.A. (Patria Re), the lead company of the Peña Verde group and a well-known reinsurer in Latin America. As of June 2025, Peña Verde had equity of USD 864 million and premiums of USD 601 million. Patria US is considered a new company formation as it began operations in February of 2023, after receiving authorization in the United States from the South Carolina Department of Insurance. The company was created and is domiciled in South Carolina, as part of Peña Verde’s efforts to expand and strengthen its operations.
AM Best considers Patria US’ balance sheet strength to be at the very strong level, with its capital base expected to strengthen under capital contributions planned for the upcoming years. The company has received two capital contributions, the first one in September 2024, in which Patria US received USD 8.5 million from its parent company; the most recent capital infusion took place in October 2025, which amounted to USD 6.5 million. AM Best will monitor the company’s capital inflows, to continue assessing its capability to grow and undertake its desired level of risk.
Patria US’ operating performance is considered adequate. The company’s initial bulk of business consists of a diverse mix of premiums retroceded from Patria Re, with a profitable track record. Synergies with Patria Re and the small size of Patria US’ operation are expected to help keep operating expenses stable. The company reported a USD 394,000 profit during 2024, and as of June 2025, Patria US has reported positive bottom-line results of USD 1.6 million, achieved through premium sufficiency. AM Best will continue to monitor the underwriting quality and operating expenses to further assess this building block assessment.
Peña Verde and Patria Re have established a solid niche position in Mexico and in other Latin America markets; however, Patria US’ business profile is considered limited, given its strategic role within the group.
Patria US shares all the group’s comprehensive ERM infrastructure and practices, as well as the expertise from its shared management team. AM Best considers the company’s ERM assessment as appropriate for its risk appetite and as being strongly supported by the holding company’s back office.
Positive rating actions could occur if Patria US is able to strengthen its capital base through capital contributions and profitable results, elevating its risk-adjusted capitalization to the strongest level, and demonstrating a consistent trend. Negative rating actions could also take place if the support that Patria US receives from its group decreases in AM Best's opinion.
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 Sept. 18, 2025)
· Catastrophe Analysis in AM Best Ratings (Version Feb. 8, 2024)
· Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 2025)
· 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: Nov. 8, 2024
· Initial Rating Date: Aug. 30, 2023
· Date Range of Financial Data Used: Dec. 31, 2023-June 30, 2025
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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.
If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.
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. AM Best keeps certain activities of its business units separate from each other to preserve the independence and objectivity of their respective activities. As a result, certain business units of AM Best may have information that is not available to other AM Best business units. AM Best has established policies and procedures to maintain the confidentiality of certain confidential (non-public) information received in connection with each analytical process. 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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.