AM Best has affirmed the financial strength rating of ‘A’ (Excellent) and the long-term issuer credit rating of ‘a’ (Excellent) of Lion Re, with ‘stable’ outlook
Lion Re is a Bermuda-based captive reinsurer assuming risks from ASSA Tenedora affiliates for property, auto, liability, marine, group life, health and miscellaneous businesses.
The ratings reflect the captive’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.
The rating agency recognises its strategic role in the group’s overall regional strategy; however, as it is a captive, Lion Re’s business profile is considered limited once compared with other commercial reinsurers.
Lion Re continues to perform an important role in ASSA Tenedora’s strategy as it consolidates operations in the Central American region by providing reinsurance capacity.
Lion Re’s adequate level of operating performance results from its affiliated insurance companies in the Central American region, as well as its affiliation to Grupo ASSA, which provides synergies, operating efficiencies and financial support.
The company reviews its underwriting guidelines constantly to improve the performance of its business segments that are deviating from targets.
As of December 2023, Lion Re’s consistent profitability was reflected in a 37 per cent return-on-equity ratio. In 2024, the company remained profitable and in line with previous results.
