A.M. Best Assigns Ratings to Ocean International Reinsurance Company Limited

A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" to Ocean International Reinsurance Company Limited (Ocean Re) (Barbados).

The outlook assigned to both ratings is stable.

The ratings for Ocean Re are based on its solid risk-adjusted capital position, favorable operating performance and liquidity measures as well as its low operating cost structure. The ratings also consider the company's experienced management team, which is familiar with the risks and the region Ocean Re operates in.

These strengths are partially offset by Ocean Re's limited market position and financial flexibility as a result of its private ownership structure. The outlook is based on A.M. Best's expectation that the company will maintain its strong capitalization and operating performance.

Ocean Re focuses on reinsurance and offers a diversified product mix in several countries throughout Latin America. The company also offers facultative programs that are fully funded to the expected ultimate losses by the company's clients.

Ocean Re's management is committed to growth in capital, a well- diversified investment portfolio and a focus on its long-term stability. A.M. Best anticipates that Ocean Re will continue to report profitable underwriting results and will maintain solid capitalization levels.

Although the outlook for Ocean Re's ratings is stable and the ratings are not expected to be upgraded nor its outlook revised within the next 12-24 months (since its performance and capital position have already been considered in the ratings), A.M. Best could downgrade the ratings and/or revise the outlook if the company's Best Capital Adequacy Ratio (BCAR) declines, its operating performance and risk profile deteriorate, or losses from claims or investments erode capital.

A.M. Best Company is an insurance rating and information source.

More information:

www.ambest.com

www.ambest.com/captive

www.ambest.com/ratings/methodology

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