Best’s News & Research Service - February 06, 2026 01:44 PM (EST)
AM Best Affirms Credit Ratings of Orion Reinsurance (Bermuda) Ltd.
- February 06, 2026 01:44 PM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Orion Reinsurance (Bermuda) Ltd. (Orion Re) (Hamilton, Bermuda). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Orion Re’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.
The ratings also reflect the company’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and the expertise of its management team. Partially offsetting these positive rating factors are the size of the company, which limits business diversification given the inherent concentration risk, the sensitivity of the BCAR to changes in Orion Re’s balance sheet structure and the composition of the business portfolio.
Orion Re was founded in December 2004 and is licensed by the Bermuda Monetary Authority to act as a class III insurer without restrictions of any kind in its class. Orion Re’s main line of business is difference in conditions insurance, but the company also retains specific life and non-life insurance business. Orion Re has experience and recognition in the public services industry, as well as strategic alliances to support recognized Latin American reinsurers.
As of December 2024, 40% of the company’s gross written premium was sourced in Mexico, with the rest distributed in 13 other countries, primarily throughout Latin America and the Caribbean.
Premium sufficiency was maintained in 2024, and Orion Re has presented profitable bottom-line results during most years. Results are expected to improve as the business expansion plan takes place, supported by income from the rent-a-captive business, which has presented a consistent flow over the past years.
As of August 2025, the company posted USD 1.14 million in net income, and the loss ratio stood at 25%, reflecting the management’s efforts to contain its claims.
Orion Re’s risk-adjusted capitalization, as measured by BCAR, has shown improvement since 2019, mainly due to a more-conservative approach in its investment allocations, which has reduced asset risk. However, due to the company’s size and operation, the BCAR is sensitive to changes in the company’s balance sheet structure and the composition of Orion Re’s business portfolio.
Positive rating actions could take place with consistent strengthening of the company's balance sheet, supported by a successful development of the business strategy. Negative rating actions could occur if premium growth, changes in the asset structure and/or underwriting risk profile or deteriorating operating results reduce risk-adjusted capitalization to a level that no longer supports the ratings.
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: Dec. 6, 2024
- Initial Rating Date: Nov. 3, 2020
- Date Range of Financial Data Used: Dec. 31, 2020-Aug. 31, 2025
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