JULY 11, 2019 08:32 AM (EDT)
AM Best Upgrades Credit Ratings of Optimum Re Insurance Company and Optimum Reassurance Inc.
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FOR IMMEDIATE RELEASE
OLDWICK - JULY 11, 2019 08:32 AM (EDT)
AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” of Optimum Re Insurance Company (Dallas, TX) and Optimum Reassurance Inc. (Montreal, Quebec, Canada) (collectively referred to as Optimum Re). The outlook of the Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Optimum Re’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The ratings reflect the group’s continued strong operating performance, which is characterized by good underwriting, low volatility, good expense management and strategic use of retrocession. The ratings also reflect the group’s balance sheet strength, which is assessed as very strong, based on its prudent reserving practices, high quality portfolio and very strong risk adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR).
The company underwrites mortality business through traditional life insurance products, as well as disability, travel and final expense insurance coverages. The ratings also factor Optimum Re’s role in the niche markets it serves as a North America-based life reinsurer. The company has developed certain niches while serving small to larger life insurers in the individual and group segments in Canada and the United States. The company’s risks are well-identified and risk management is secured through various inputs within the company, with a focus on conservatism. Both companies use retrocession as part of their risk management strategy.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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