AM Best Upgrades Credit Ratings of Patria Re (US), Inc.
- October 30, 2026 03:10 PM (EDT)
//BestWire// - AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a- “(Excellent) from “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’ 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 rating upgrades reflect Patria US’ improved risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), derived from a substantial capital injection by Grupo Peña Verde, and supported by strong positive bottom-line results.
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 2026, Peña Verde had equity of USD 937 million and premiums of USD 709 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 from positive bottom-line results. The company has received three capital contributions; the most recent capital infusion took place in August 2026, which amounted to USD 50 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 by Patria Re, with a profitable track record. Synergies with Patria Re are expected to help keep operating expenses stable, as Patria US’ operation continues to grow. The company reported a USD 3.92 million profit during 2025, and as of June 2026, Patria US has reported positive bottom-line results of USD 1.7 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 current 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 Re (US), Inc., is able to successfully execute its business plan on increasing its U.S. operations and expanding premium sources, while maintaining consistent and profitable results in the long term.
Negative rating actions could also take place if a sustained deterioration of risk-adjusted capitalization occurs driven by unfavorable results, or the support and plans the group has for Patria US negatively change 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 July 16, 2026)
- Catastrophe Analysis in AM Best Ratings (Version Feb. 27, 2026)
- Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 2025)
- Rating New Company Formations (Sept. 05, 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: Dec. 18, 2025
- Initial Rating Date: Aug. 30, 2023
- Date Range of Financial Data Used: Dec. 31, 2023-June 30, 2026
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