A.M. Best Assigns Credit Ratings to Sura Re Ltd.
The ratings reflect Sura Re’s balance sheet strength, which
Sura Re is the wholly owned start-up captive reinsurer of Suramericana
Balance sheet strength is considered very strong as risk-adjusted capitalization is more than adequate for the risks the company holds, which will be strengthened further by planned capital contributions during 2018, without dividend payments expected in the medium term. Asset-liability management follows a very conservative investment policy focused on maintaining liquidity to cover its obligations in terms of tenure and currencies. Additionally, ERM is considered appropriate as it is completely supported by Sura’s expertise and management team.
As of
Positive rating actions could take place in the medium term if Sura Re is able to achieve its targeted geographic premium distribution with good quality underwriting coupled with a very strong balance sheet assessment. Negative rating actions could take place if the company fails to meet its financial performance to a level that impacts capital and therefore its risk-adjusted capitalization.
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:
- Alternative Risk Transfer (ART) (Version
Oct. 13, 2017 ) - Evaluating Country Risk (Version
Oct. 13, 2017 ) - Understanding Universal BCAR (Version
Oct. 13, 2017 ) - Rating New Company Formations (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: Not Rated.
- Date of Financial Data Used:
Dec. 31, 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180321005930/en/
Elí Sánchez, +52 55 1102 2720, ext. 108
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Senior Director, Analytics
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