AM Best has affirmed the financial strength rating of A (Excellent) and long-term issuer credit rating of “a” (Excellent) of Lion Reinsurance Company (Lion Re) (Bermuda).
The outlook of these credit ratings is stable.
Lion Re is a subsidiary of ASSA Compañía Tenedora, S.A. (ASSA Tenedora) and is owned by Grupo ASSA, S.A. (Grupo ASSA), a financial services holding company publicly traded on the Panama Stock Exchange.
Lion Re is a Bermuda-based reinsurer assuming risks from ASSA Tenedora and its affiliates for property, liability, marine, group life (short-term), health and miscellaneous businesses. AM Best determines that “Lion Re’s business profile is considered limited given its accessibility to markets when compared with other commercial reinsurers.”
AM Best says the ratings reflect Lion’s Re balance sheet strength, which it assesses as “very strong”, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
Lion Re´s capital base is supportive of risk-adjusted capitalisation being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio. This is while it continues to consolidate ASSA Tenedora’s operations in the Central American region by providing reinsurance capacity.
Lion Re’s adequate operating performance results from its affiliated insurance companies in the region, as well as its affiliation to Grupo ASSA, which provides synergies, operating efficiencies and guarantee support.
The company consistently reviews its underwriting guidelines to improve the performance of business segments that are deviating from targets. Investment income continues to support Lion Re’s results; however, the company is not dependent on this revenue to achieve positive bottom-line results.
