AM Best Revises Outlook to Positive for Reaseguradora Delta, S.A. and Reaseguradora Delta, C.A.
AM Best has revised the outlook to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of
The Credit Ratings (ratings) of Delta Panama reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The positive outlook for Delta Panama points to its ability to maintain favorable underwriting metrics and profitable results in the medium and long term, while implementing a growth strategy.
Delta Panama’s very strong balance sheet strength assessment recognizes the company’s adequately matched obligations and risk appetite, as well as its shareholders’ commitment to strengthening the company’s capital base, reflected in its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and favorable net underwriting leverage metrics.
The company’s operating performance is characterized as profitable; positive bottom-line results were achieved in all business lines during 2023. While investment income contributes to Delta Panama’s earnings, profitability is fully achieved through technical results. AM Best expects Delta Panama to maintain sufficient premium levels while implementing its growth strategy.
Founded in
Delta Panama’s ERM is considered appropriate, as it is well-integrated into its operations; risk appetite and tolerance are well-defined, and the company takes advantage of its pricing model and management team, which has over 20 years of experience in the
Delta
Delta Venezuela’s risk-adjusted capitalization stands at the strongest level, as measured by BCAR, and the company is well-protected against the economic volatility present in
Positive rating actions could take place if Delta Panama is able to demonstrate sustained profitable operating results that compare favorably with a strong assessment level. Negative rating actions could occur if the company's capital base erodes due to cash withdrawals or a deterioration in operating results that would debilitate risk-adjusted capitalization to a point no longer supportive of the current 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.
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Source: AM Best
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