AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings (Long-Term ICR) of “a-” (Excellent) of Junto Resseguros S.A. (Junto Re) and Junto Seguros S.A. (Junto Seg), collectively referred to as Junto.
The outlook of these credit ratings is stable. Both companies are domiciled in Brazil.
The ratings reflect Junto’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Junto Re is classified as a local reinsurer in Brazil and mainly operates as a captive reinsurer for Junto Seg, an organisation that has been writing surety directly for more than two decades. Junto Seg is the market-facing company of the group.
AM Best says the companies benefit operationally from its minority shareholder, Travelers Brazil Acquisition LLC (with a 49.5 per cent ownership), which is owned by The Travelers Companies, Inc. These benefits include collaboration on ERM, employee development, retrocession placement, claims handling, business development and other operational functions.
After a large return of excess capital payment made to the parent companies, AM Best says that Junto continues to maintain modest underwriting leverage and strong liquidity metrics, with a comprehensive retrocession programme that provides additional capacity and reduces the company’s overall exposure. Junto is well-positioned to benefit from growth opportunities in the segment, such as performance bonds, adds the ratings company.
