A.M. Best Affirms Credit Ratings of Ocean International Reinsurance Company Limited
The ratings reflect Ocean Re’s balance sheet strength, which
The rating affirmations reflect the company’s strong risk-adjusted capital, geographic diversification, sound business strategy and good operating performance. Partially offsetting these positive rating factors is the susceptibility of its captive business to regulatory changes.
Ocean Re is a
Ocean Re’s regional geographic footprint has expanded since 2015 and now reaches into 24 countries throughout
The company’s risk-adjusted capitalization remains strong, and has benefited from its positive operating performance, which, along with a conservative dividend policy, continues to strengthen A.M. Best’s future view of the company’s development of capitalization and overall financial strength.
The operating performance of Ocean Re is good, with premium sufficiency derived from the nature of its captive business, as well as from an adequate retrocession program for its traditional reinsurance lines. Underwriting performance has remained profitable, showing an improvement in the expense ratio and overall bottom-line results.
Positive rating actions may take place if the company is able to maintain a healthy traditional reinsurance portfolio and further diversify its revenue sources while sustaining a sound retrocession program and current risk-adjusted capitalization metrics. Negative rating actions could take place if there are significant business disruptions in its captive business or if traditional reinsurance underwriting shows poor operating performance to levels that affect the company’s capital position.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Best's Credit Rating Methodology (Version
Oct. 13, 2017 ) - Alternative Risk Transfer (ART) (Version
Oct. 13, 2017 ) - Evaluating Country Risk (Version
Oct. 13, 2017 ) - Understanding Universal BCAR (Version
May 14, 2018 ) - Catastrophe Analysis in A.M. Best Ratings (Version
Oct. 13, 2017 ) - Available Capital & Holding Company Analysis (Version
Oct. 13, 2017 ) - Rating Surety Companies (Version
Oct. 13, 2017 )
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best’s Credit Ratings.
- Previous Rating Date:
Sept. 8, 2017 - Date of Financial Data Used:
Nov. 30, 2017
This press release relates to rating(s) that have been published on
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed.
A.M. Best’s credit ratings are independent and objective opinions, not statements of fact.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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