AM Best Affirms Credit Ratings of Orion Reinsurance (Bermuda) Ltd.
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of
The ratings reflect Orion Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect the company’s strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and the expertise of its management team. Partially offsetting these positive rating factors is the size of the company, which limits business diversification given the inherent concentration risk, and the sensitivity to changes in its balance sheet structure, and the composition of Orion Re’s business portfolio.
Orion Re was founded in
As of
Orion Re’s growth has fluctuated over the past five years, which is consistent with the size of the company. Premium sufficiency has yet to be achieved; however, the company has maintained profitable bottom-line results during most years, which are expected to improve as the company’s business expansion plan takes place. The results also are supported by income from the Rent-a-Captive business, which has presented a consistent flow over the past years.
As of
Orion Re’s risk-adjusted capitalization, as measured by BCAR, has shown improvement since 2019, mainly due to a more conservative approach in the investment policies, which has reduced asset risk. However, due to the company’s size and operation, the scores are sensitive to changes in its balance sheet structure, and the composition of Orion Re’s business portfolio.
Negative rating actions could occur if premium growth, changes in the investment and/or underwriting risk profile, or deteriorating operating results reduce risk-adjusted capitalization to a level that no longer supports the ratings. Although unlikely, positive rating actions could take place as a result of the strengthening of the company's balance sheet, supported by a successful development of the business strategy.
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
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
src="https://cts.businesswire.com/ct/CT?id=bwnewssty=20231130392434r1sid=acqr8distro=nxlang=en" style="width:0;height:0" />
View source version on businesswire.com: https://www.businesswire.com/news/home/20231130392434/en/
Senior Financial Analyst
+52 55 1102 2720, ext. 134
[email protected]
Associate Director, Public Relations
+1 908 882 2310
[email protected]
Senior Director, Analytics
+52 55 1102 2720, ext. 107
[email protected]
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
Source: AM Best
Aflac’s Award-Winning My Special Aflac Duck® Brings High-Tech Comfort and Joy to San Antonio Children Facing Cancer and Blood Disorders
Court: Insurer must cover rock-mining blasting damage to Miami-Dade home [Miami Herald]
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News