A.M. Best has downgraded the financial strength rating to “B++ (Good)” and the issuer credit ratings to “bbb” of Istmo Compañía de Reaseguros (Istmo Re), Aseguradora del Istmo (ADISAP) and Liffey Reinsurance Company (Liffey Re).
Istmo Re and ADISAP are both located in Panama City, Panama, while Liffey Re is located in Dublin, Ireland.
According to A.M. Best, the downgrades reflect the companies’ “deterioration in financial flexibility derived from increasing financial leverage, limited growth prospects and a downward trend in operating performance, reaching negative levels at year-end 2015”.
The ratings downgrade of ADISAP and Liffey Re are the same actions as those taken on their parent company, Istmo Re.
A.M. Best said: “The rating downgrades and the under review with negative implications status of Liffey Re reflect the full dependence of the company on Istmo Re’s business as its captive retrocessionaire and deterioration in operating performance. Liffey Re’s ratings will move in tandem with those taken on Istmo Re.”
