AM Best has affirmed Global Protection Reinsurance Ltd.’s (GPR) financial strength rating of B++ (Good) and its long-term issuer credit rating of “bbb” (Good).
Both ratings carry a stable outlook, reflecting AM Best’s view of GPR’s balance sheet strength, which it assesses as strongest, along with adequate operating performance, a limited business profile, and appropriate enterprise risk management (ERM).
The stable outlooks reflect AM Best’s expectation that GPR will maintain its current balance sheet strength assessment, while strategic initiatives are ongoing.
Based in Barbados, GPR is fully owned by Global Protection Holding Corp, a subsidiary of Ficohsa Corp S.L. (Spain), which was previously named Corporacion Ficohsa S.A. and domiciled in Panama before its 2023 relocation to Spain.
GPR primarily focuses on reinsuring facultative risks within its group, limiting its market reach to El Salvador, Guatemala, Honduras, Nicaragua, and Panama.
GPR has strengthened its capital position over time through reinvested earnings. The balance sheet strength assessment reflects the company’s capacity to generate profit, benefiting from synergies within its group structure.
Historically, GPR has reported positive net results, supported by favorable technical performance as it pursues new business within its group. The company’s technical approach and new business lines will continue to be monitored by AM Best for their impact on operating performance, with an expectation that GPR will sustain premium sufficiency and consistent profitability trends.
AM Best views GPR’s business profile as limited, given its choice to operate exclusively within its economic group’s geographic footprint. However, over time, AM Best notes that greater diversification may be possible due to the group’s operational depth.
ERM is assessed as appropriate for GPR, with integration into group operations and adherence to group risk and investment policies, which have been pre-approved by management.
AM Best indicates that potential negative rating actions could occur if GPR experiences a decline in risk-adjusted capitalization or if business disruptions adversely affect operating performance. Positive rating actions may be considered if GPR’s operating performance trends upward, with increased diversification in revenue and profit.
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