Moody’s Investor Services has affirmed Rivoli Reinsurance Company’s global local currency "A2" insurance financial strength (IFS) rating.
Rivoli Re—based in Burlington, Vermont—is the captive insurer of Mexico-based telecommunications company, América Móvil.
Rivoli Re’s IFS rating is based on the explicit support provided by its parent company, América Móvil.
As well as the implicit support and integration with its parent, “Rivoli Re is América Móvil’s captive reinsurance company and an integral component of the group’s insurance risk management programme”, said Moody's analyst José Montaño.
“Rivoli Re assumes only América Móvil's proprietary property and business interruption risk."
The company covers up to $50 million of losses per event. This is supported by América Móvil's guarantee, which is in line with the reinsurer’s risk retention limit on property risks.
Rivoli Re's IFS rating could be delinked from América Móvil's rating and downgraded if there is a decline in parental support, including an increase in Rivoli Re's property risk retention level without a corresponding increase in the guarantee, or should Rivoli Re begin to assume non-group related risk exposures.
