The ratings reflect ASSA's continued excellent operating results, favorable capitalization and strong business profile. ASSA maintains a well-diversified book of business that includes both property/ casualty and life/health products. ASSA is ultimately owned by
ASSA has shown disciplined underwriting in a highly competitive market, while its risk-based capitalization remains fully supportive of its current ratings and outlook. ASSA's underwriting profitability is complemented by consistent levels of investment income, which has enabled it to steadily appreciate surplus while still providing
Partially offsetting these positive rating factors is ASSA's risk concentration in a geographically limited insurance market along with operating in a country that
Positive rating actions could occur if ASSA maintains its consistently strong underwriting performance and long-term profitability in conjunction with an upgrading of
The ratings of Lion Re acknowledge its strong initial capitalization, conservative operating strategy and the explicit parental support. The ratings also consider Lion Re's strategic role as a captive reinsurer of
Also inuring to Lion Re's ratings is its sound business plan, upon which the profitability and liquidity measures of these ratings are based. The ratings are supported by an amount of capital that meets
These positive rating factors are partially offset by execution risk due to the unproven start-up nature of the company.
Drivers that could lead to a positive outlook or rating upgrades for Lion Re are a stable underwriting performance, as well as reduced overall net exposure over the next few years and successful implementation of its business plan. Factors that could lead to a negative outlook or rating downgrades are a material loss of capital from either claims or investments, a reduced level of capital that does not support the ratings or an increase in net retention. Lion Re's ratings are tied to
For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides an explanation of
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