AM Best has reaffirmed the Financial Strength Rating and Long-Term Issuer Credit Rating of Ocean International Reinsurance Company Limited (Ocean Re) at A- (Excellent) with a stable outlook.
The Barbados-headquartered reinsurer had established its presence in 96 nations by the end of 2023, with business operations within Latin America, Asia, the Middle East, and North Africa. The geographic diversification strategy has positioned the company more strongly in the market and enhanced the risk distribution capabilities.
The success of Ocean Re lies in its underwriting discipline and acquisitions of the operations of business partners, which have diversified its underwriting skills and gained its sole access to significant markets.
The financial performance of the company up to December 2024 indicates healthy net income on the back of good premium sufficiency from captive business operations and traditional reinsurance lines, AM Best reported.
The rating agency highlighted Ocean Re's very strong balance sheet strength and risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). While the outlook remains positive, AM Best said it would continue monitoring the holding company's influence on Ocean Re's financial stability, particularly regarding financial leverage and corporate structure.
As a Class 2 licensed reinsurer, Ocean Re offers both traditional reinsurance and facultative programs that are fully funded to cover projected ultimate losses. This diversified approach has contributed to the company's strong financial performance and market expansion.
