AM Best has assigned a financial strength rating of B (Fair) and a long-term issuer credit rating of “bb+” (Fair) to Reaseguradora Santo Domingo, SA (REASANTO) in the Dominican Republic, with the outlook for these ratings stable.
According to the credit agency, the ratings reflect REASANTO’s balance sheet strength, assessed by AM Best as strong, along with its adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM).
Founded in 1973 in Santo Domingo, REASANTO operates primarily in the fire and allied business lines within the Dominican Republic. Its business profile is considered limited due to its geographic and business line concentration.
As per AM Best, the company continues to manage its exposures to probable maximum losses through active management of its reinsurance program, aiming to reduce volatility in its capital base. These efforts are supported by a conservative investment strategy and an adequate reinsurance panel.
REASANTO’s operating performance is deemed adequate, driven by consistent net income supported by controlled expenses and claims. This approach helps reduce deviations in the company’s budget and improve underwriting quality.
The company’s ERM is also considered appropriate, with defined policies and procedures to maintain risk tolerance levels, which are regularly reviewed.
The stable outlook reflects AM Best’s expectation that REASANTO will maintain its current levels of risk-adjusted capitalization as it pursues its strategy to expand geographically.
AM Best noted that potential positive rating actions could occur if REASANTO’s balance sheet strength improves through sustained growth in its capital base and prudent management that supports stable risk-adjusted capitalization levels.
Conversely, negative rating actions could result from an erosion of the company’s capital base due to weakened operating performance.
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