Ocean International Reinsurance (Ocean Re) has shifted to a positive outlook, attributed to the firm’s disciplined underwriting approach, leading to the profitable deployment of its capital.
AM Best noted that the company’s operating performance metrics have shown an upward trend, supported by growth targets focusing on diversified geographical exposures, potential new business ventures, and the successful expansion of its risk-bearing portfolio.
Additionally, the Barbados-based firm’s financial strength rating (FSR) has been updated at A- (Excellent) and the long-term issuer credit rating (Long Term ICR) at “a-” (Excellent).
The ratings reflect Ocean Re’s robust balance sheet strength, which AM Best categorizes as the strongest. The ratings also consider the company’s adequate operating performance, neutral business profile, and effective enterprise risk management (ERM).
Ocean Re operates as a Class 2 insurance company in Barbados, offering a wide range of products globally with a significant presence in Latin America. The company’s business model includes facultative reinsurance programs, which are fully funded to cover the projected ultimate losses of its clients.
As of December 2022, Ocean Re’s regional presence spanned 114 countries across various regions, including Latin America, Asia, the Middle East, and North Africa.
The company’s balance sheet strength has been bolstered by a capital contribution in early 2020 and profitable outcomes until September 30, 2023. AM Best notes that the broader geographic diversification may lead to improvements in required capital over the medium term.
However, the agency says that it will continue to monitor the impact of Ocean Re’s holding company on its balance sheet, considering the holding’s financial leverage and evolving corporate structure.
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