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FOR IMMEDIATE RELEASE
MEXICO CITY - DECEMBER 11, 2025 12:18 PM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Sapphire Reinsurance Company (Sapphire) (Cayman Islands).
The Credit Ratings (ratings) reflect Sapphire’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The outlooks revised to positive from stable reflect Sapphire’s positive operating performance driven by ongoing underwriting discipline and operational efficiency. AM Best’s expects the favorable trend in operating performance to continues while maintaining the current assessment of balance sheet strength.
Sapphire was incorporated on September 6, 2005, and operates subject to the provisions of the Companies Act of the Cayman Islands. The company is a captive reinsurer related to a large privately owned conglomerate with operations across multiple business sectors in Latin America, including industrial, motor, textile, pipe manufacturing, public transport and waste management. It provides coverage through reinsurance and retrocession agreements with duly registered and approved reinsurers in jurisdiction where the underlying risk is located, such as Colombia, Chile and El Salvador.
At end-year 2024, the portfolio is highly concentrated with 86.2% of gross premiums written in Colombia, followed by 12.9% in Chile and 0.9% in El Salvador. Within the business mix, motorcycle insurance stands out, representing the bulk of the portfolio with 59.5% of net written premiums, followed by auto at 28.5%, life group at 7.6%, marine at 1.6%, material damage at 2.5% and machinery and equipment at 0.2%. Due to the concentration levels in the portfolio, as well as its limited commercial scope as a captive, AM Best assesses Sapphire's business profile as limited.
Sapphire’s balance sheet strength assessment of strongest is supported by its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also factors in its stability and constantly growing capital base supported by the reinvesting of earnings and characterized by responsible asset-liability management and a low underwriting leverage, as well as a strong liquidity position.
The company continues to strengthen its operating performance, maintaining positive results driven by sound technical efficiency. Over the last five years, the combined ratio has consistently remained below 100%, averaging 44.5%, reflecting effective expense management and loss ratios that demonstrate discipline underwriting. While investment activity continues to support profit growth, Sapphire’s profitability is primarily driven by its solid operational performance. AM Best expects Sapphire to maintain premium sufficiency, supported by disciplined underwriting.
AM Best considers Sapphire’s ERM to be appropriate as it has defined policies and procedures, which are attached to its risk tolerance adopting a conservative approach that is continuously monitored.
Positive rating actions could occur if the company continues a consistent upward trend in its profitability metrics, while maintaining its strongest level of risk-adjusted capitalization as measured by BCAR. Conversely, negative rating actions could result if Sapphire experiences a deterioration in its risk-adjusted capitalization as a result of a weak operating performance or capital outflows. Negative rating actions could also occur if the credit profile of the ultimate parent company deteriorated to a point where it could potentially cause volatility in Sapphire’s capital base from significant capital withdrawals.
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
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.
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