AM Best assigns ratings to Ocean Re
Ocean Reinsurance Company, which focuses on reinsurance and offers a diversified product mix in several countries throughout South America, has been assigned a financial strength and issuer credit rating of “A-“ and “a-“ respectively. The outlook for both ratings is stable.
Ocean Re’s strong ratings are based on its solid-risk adjusted capital position, favourable operating performance and liquidity measures, as well as its low-cost operating structure. The ratings also consider Ocean Re’s experienced management team.
This management team is “committed to growth in capital, a well-diversified investment portfolio and a focus on its long-term stability. AM Best anticipates that Ocean Re will continue to report profitable underwriting results and will maintain solid capitalisation levels.”
These ratings, according to AM Best, are partially offset by a limited market position and financial flexibility as a result of the Ocean Re’s private ownership structure.
The stable outlook is due to the rating agency’s expectations that Ocean Re will maintain its strong capitalisation and operating performance. AM Best does not expect to upgrade the ratings in the next 12 to 24 months, a decline in its capital adequacy ratio, a deterioration of operating performance and risk profile or losses from claims or investments erode capital could result in a downgrade.