A.M. Best has affirmed the financial strength rating of “A- (Excellent)” and the long-term issuer credit rating of “a-” of Ocean International Reinsurance Company (Ocean Re), based in Barbados.
According to A.M. Best, the ratings reflect Ocean Re’s strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management.
The rating affirmations reflect the company’s strong risk-adjusted capital, geographic diversification, sound business strategy and good operating performance. However, A.M. Best explained that partially offsetting these positive rating factors is the susceptibility of its captive business to regulatory changes.
Ocean Re offers a diverse product mix throughout Latin America and other strategically identified markets in other areas of the world.
The company also offers facultative programmes that are fully funded to the projected ultimate losses of the company’s clients.
A.M. Best said: “Its business development strategy clearly identifies an increase in the proportion of traditional reinsurance in its portfolio, as compared with its captive portfolio; however, regulatory changes remain a factor when evaluating the continuity of its fully funded programmes, as legislative adjustments could potentially limit its premium growth.”
