AM Best Upgrades Credit Ratings of Reaseguradora Santo Domingo, S.A.

Business Wire

MEXICO CITY--(BUSINESS WIRE)--
AM Best has upgraded the Financial Strength Rating to “B+” (Good) from B (Fair) and the Long-Term Issuer Credit Rating to “bbb-” (Good) from “bb+” (Fair) of Reaseguradora Santo Domingo, S.A. (REASANTO) (Dominican Republic). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect REASANTO’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 (ERM).

The ratings upgrade reflects the company’s recent capitalization strengthening and consistently sound balance sheet fundamentals, supported by prudent asset-liability management, low underwriting leverage, adequate adjusted financial leverage of 13.4%, as calculated by AM Best, and a reinsurance program designed to limit net retained exposures. REASANTO´s balance sheet strength assessment of very strong is underpinned by the strongest level of risk-adjusted capitalization in 2025, as measured by Best’s Capital Adequacy Ratio (BCAR). The company continues to adjust its exposures to probable maximum losses by actively managing its reinsurance program and aiming to reduce volatility in its capital base.

REASANTO is a reinsurance company founded in 1973 in Santo Domingo, Dominican Republic. The company focuses its product offerings on the fire and allied business lines. In 2024, the company began underwriting business in Central America following its plan to expand operations to other countries; however, business continues to be concentrated in the Dominican Republic. The company’s business profile is considered limited given its geographic and business line concentration. AM Best will continue to monitor the deployment of REASANTO’s business strategy outside the country.

The company’s operating performance is assessed as adequate, driven by consistent net income backed by disciplined underwriting practices, favorable loss experience and controlled expense levels. While investment income continues to support earnings generation, profitability remains primarily driven by solid underwriting performance; however, earnings generation remains exposed to catastrophe volatility due to portfolio concentration.

AM Best considers REASANTO’s ERM to be appropriate, supported by disciplined underwriting controls, active monitoring of portfolio exposures and the implementation of an internal capital model.

The rating outlook revision to stable from positive, reflects AM Best’s expectation that REASANTO will maintain its overall balance sheet strength assessment, supported by risk-adjusted capitalization at the strongest level, as measured by BCAR, supported by disciplined underwriting practices and stable risk management.

Positive rating actions could occur if the company achieves sustained improvement in its operating performance, while maintaining low volatility levels. Negative rating actions could take place if there is a material deterioration in its balance sheet fundamentals, such as a significant decline in risk-adjusted capitalization caused by capital outflows or large-scale natural catastrophes.

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.