AM Best Affirms Credit Ratings of Redbridge Insurance Company Limited
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 RICL’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect the company’s strongest risk-adjusted capitalization as of year-end 2021, as measured by Best’s Capital Adequacy Ratio (BCAR), sound business strategy and its experienced management team. Partially offsetting these positive rating factors are the small size of the company and the challenging environment in which it operates, which could pressure future growth and underwriting performance.
RICL is an insurance and reinsurance company founded in
RICL’s main line of business is health insurance, with a complete network of operations that has enabled growth in the Latin American and
RICL’s loss ratio deteriorated in 2021 compared with previous-year results; however, after the incorporation of the new entities into the organization in 2020, the cost-revenue structure of the company has shifted, and this improved profitability despite the rise in claims. The company has gradually increased its retention, but maintained its underwriting at a healthy volume with respect to the growing capital base, and is expected to maintain underwriting leverage metrics in the near term.
Positive rating actions could occur as a result of continued improvement in operating performance while the company successfully executes its business expansion. Negative rating actions could occur if premium growth or deteriorating underwriting results erode the company's capital base and reduce risk-adjusted capitalization to a level that no longer supports the ratings. Negative rating actions could also occur as a result of a deterioration in the profile of RICL's holding company.
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
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Source: AM Best
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