AM Best Affirms Credit Ratings of Active Capital Reinsurance, Ltd.

Business Wire

MEXICO CITY--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Active Capital Reinsurance, Ltd. (Active Re) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Active Re’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The stable outlooks reflect Active Re’s ability to maintain strong operating metrics driven by consistent underwriting practices, which will continue to translate into a strengthened capital structure.

The rating affirmations are due to Active Re’s stable profitability metrics, supported by a keen underwriting strategy with constant adaptation to the economic environment and a strong operating performance that compares favorably with its peers.

Active Re is a Barbados-based reinsurer established in 2007. At year-end 2025, the company operated with net premiums written (NPW) that were composed of property/casualty (67.3%), group life (18.4%) and surety (14.3%). The company continues to further diversify its geographic footprint in Asia (38.4%), America (35.8%), Europe (18.4%), Africa (6.9%) and the rest in Oceania (0.5%), and focuses its underwriting efforts on short-term non-catastrophe risks. Active Re continues to adapt to the current economic environment by innovating its internal processes, which results in better decision-making.

The company’s balance sheet strength is underpinned by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), maintained by the consistent growth of the company’s capital base, driven by reinvestment of earnings and capital contributions. The ratings also reflect Active Re’s adequate reinsurance program, placed among a diversified group of reinsurers with good security levels, consequently minimizing counterparty credit risk exposures, as well as a supportive risk management framework for its risk profile. Active Re is characterized by a conservative underwriting leverage as reflected by an NPW-to-surplus ratio of 1.13x, as of December 2025.

An offsetting rating factor is the strong competitive environment in Active Re’s targeted geographic markets, which the company faces through its global expansion.

In 2025, Active Re maintained profitable bottom-line results while placing greater emphasis on the quality of its underwriting, allocating acquisition expenses to delegated underwriting authorities that have reported good technical results. As of August 2026, the company continues to report strong underwriting metrics and positive bottom-line results.

The continuous improvement in Active Re’s ERM framework has allowed it to identify and manage risks better. As a result, related party transactions continue to be reduced significantly, improving its financial flexibility.

Negative rating actions could result from deterioration in risk-adjusted capital due to major capital outflows. While unlikely in the short term, positive rating actions could occur if Active Re continues to strengthen its geographic diversification while maintaining profitable results, with a positive effect on its balance sheet. Negative rating actions could occur if the operating performance of the company deteriorated, becoming unsupportive of the strong assessment.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.