AM Best has affirmed the financial strength rating of ‘B++’ (Good) and the long-term issuer credit rating of ‘bbb’ (Good) of Sura Re, captive reinsurer of the Colombia-based insurance group Suramericana.
The outlook of these credit ratings is 'stable’.
The company was established in Bermuda as a Class 3A insurer in December 2015 and received approval from the regulator to operate as a Class C insurer in April 2022.
Sura Re's primary role is to participate in property business underwritten by its parents’ affiliates across Latin America, assisting the group achieve its strategic regional goals.
The ratings reflect Sura Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM).
In 2023, Sura Re's capital requirements reflected higher premium risk as the company retained more risks under its strategy. AM Best anticipates an increase in capital demands due to greater capital deployment while maintaining its strongest level of risk-adjusted capitalisation.
The company's conservative asset-liability management prioritises liquidity to meet obligations in terms of tenure and currency, with AM Best viewing its ERM practices as appropriate due to support from its parents’ expertise.
Sura Re, as part of one of Latin America's largest insurance groups, benefits from flexibility in managing growth and premium risk, which AM Best views as adequate for its current ratings.
