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FOR IMMEDIATE RELEASE
MEXICO CITY - NOVEMBER 12, 2025 11:11 AM (EST)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Spheric Assurance Company, Ltd. (Spheric) (British Virgin Islands).
These Credit Ratings (ratings) reflect Spheric’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 (ERM).
The stable outlooks reflect AM Best’s expectation that the adjustments in underwriting strategy will result in a more stable operating performance, while risk-adjusted capitalization will remain at levels supportive of the current ratings, as measured by Best’s Capital Adequacy Ratio (BCAR), due to the company’s prudent capital management. Previous ERM factors pressured the company’s ratings in the past, but that concern was properly solved as Spheric reinforced its accounting department and adjusted its underwriting practices.
Spheric has steadily strengthened its capital base by reinvesting its earnings. The strong balance sheet strength assessment also factors in the company’s conservative investment portfolio, mainly integrated by fixed income and equity mutual funds. Spheric has strengthened its reinsurance panel by increasing the number of participants with good security levels. At the end of third-quarter 2025, the company showed an improved balance sheet position, recovering from the pressure it received from Hurricane Otis in 2023, reinforcing its strong balance sheet strength assessment.
Spheric has shown positive bottom-line results over the years, its average operating performance has been underpinned by positive technical results. The company shows a recovery in its positive bottom-line results as of December 2024, a trend that continues at the end of third-quarter 2025. AM Best expects the company to maintain premium sufficiency levels while implementing its expansion strategy.
AM Best assesses the company’s business profile as limited. Spheric concentrates its efforts in niche markets and the geographic diversification of its premiums and client base is somewhat narrow. Spheric is based in the British Virgin Islands and fully owned by Global Insurance Group Holding Company, Inc. The largest share of Spheric’s gross premiums written is derived from insuring personal watercraft.
Spheric’s ERM is considered appropriate, as it is well-integrated into its operations. Spheric has made adjustments and strengthened its accounting department in order to solve operational risk deficiencies experienced in previous years. AM Best expects the stabilization in Spheric’s governance to continue, mitigating operational risk by allocating responsibilities throughout the team.
Positive rating actions could take place if the company’s capital base continues growing while risk-adjusted capitalization remains at the strongest levels. Negative rating actions could take place if Spheric’s operating performance deteriorates, returning to a volatile behavior.
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:
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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.