AM Best Information Services

AUGUST 05, 2022 11:36 AM (EDT)

AM Best Assigns Credit Ratings to Spheric Assurance Company, Ltd.

 Ricardo Rodríguez
Financial Analyst
+52 55 1102 2720, ext. 139

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204


MEXICO CITY - AUGUST 05, 2022 11:36 AM (EDT)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) to Spheric Assurance Company, Ltd (Spheric) (British Virgin Islands). The outlook assigned to these Credit Ratings (ratings) is stable.

The 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 are based on AM Best’s expectation that Spheric will maintain its risk-adjusted capitalization at the strongest level in support of the rating, as measured by Best’s Capital Adequacy Ratio (BCAR), while keeping up its adequate level of operating performance that is mainly driven by good underwriting results, resulting in recurrent premium sufficiency.

Spheric’s has steadily strengthened its capital base by reinvesting its earnings. The strong balance sheet assessment also factors in the company’s conservative investment portfolio, mainly integrated by investment funds and certificates of deposit. Despite the company’s reinsurance dependence over the years, Spheric has managed to increase its retention as its expertise in its niche markets sharpens.

The company has shown positive bottom-line results over the years; Spheric’s operating performance has been underpinned by positive technical results, while pursuing new niche opportunities in the market. 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 is premiums and client base is somewhat narrow. The company is based in the British Virgin Islands and fully owned by Global Insurance Group Holding Company. Spheric operates with gross premiums written composed of personal boats (highest share), kidnap and ransom and personal accidents.

Spheric’s ERM is considered appropriate, as it is well-integrated into its operations. The company has a sound reinsurance program in place with reinsurers that are highly rated.

Negative rating actions could take place if there is a deterioration in the company’s risk-adjusted capitalization due to major capital outflows or a negative trend in operating results.

The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), 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

Key insurance criteria reports utilized:

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

  • Catastrophe Analysis in A.M. Best Ratings (Version Oct. 13, 2017)

  • Evaluating Country Risk (Version Oct. 13, 2017)

  • Scoring and Assessing Innovation (Version March 5, 2020)

  • Understanding Global BCAR (Version June 30, 2022)

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, please refer to Guide to Best’s Credit Ratings.

  • Previous Rating Date: Not Rated

  • Date Range of Financial Data Used: Dec 31, 2017-Dec 31, 2021

This press release relates to rating(s) that have been published on AM Best’s website. For additional 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.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

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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.

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AMB# Company Name
076762 Spheric Assurance Company, Ltd.