A.M. Best has affirmed the financial strength rating of “A-(Excellent)” and an issuer credit rating of “a-” to Reaseguradora America SPC (RAM Re), based in the Cayman Islands.
Ram Re is a wholly owned subsidiary of ASSA Compania Tenedora, which is a wholly owned subsidiary of Grupo ASSA—a publicy traded holding company on the Panama stock exchange.
The ratings reflect RAM Re’s adequate capitalisation and explicit parental support. The results also consider RAM Re’s strategic role as an alternative risk transfer vehicle.
RAM Re will operate as a Cayman Islands-based segregated portfolio company with a core and three cells, which will underwrite monthly cover for its participants.
“These positive rating factors are partially offset by execution risk due to the unproven start-up nature of this company. Rating drivers that could lead to a positive outlook or an upgrading of RAM Re’s ratings are a stable underwriting performance, a reduced overall exposure over the new few years and a successful implementation of its business plan,” said a statement from the ratings firm.
