AM Best Upgrades Issuer Credit Rating of Reaseguradora Delta, S.A.; Assigns Credit Ratings to Reaseguradora Delta, C.A.
AM Best has upgraded the Long-Term Issuer Credit Rating to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating of B++ (Good) of
The 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.
The upgrade of Delta Panama’s Long-Term ICR is driven by the strengthening of the company’s capital base, after the company received a material capital infusion that translated into improved risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), as well as favorable levels of underwriting leverage that reflect a strengthened and well protected balance sheet.
The stable outlooks reflect AM Best's expectations that Delta Panama will maintain the strongest levels of risk-adjusted capitalization, driven by prudent risk selection while successfully implementing its geographic expansion.
Delta Panama’s very strong balance sheet strength 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 levels of risk-adjusted capitalization and favorable net underwriting leverage metrics.
The company’s operating performance is characterized as being profitable; positive bottom-line results have been achieved through technical results in all lines of business during 2022. While investment income contributes to Delta Panama’s earnings, it is limited by the conservatism of the portfolio. AM Best expects Delta Panama to maintain premium sufficiency levels while implementing its growth strategy.
Delta
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 Latin America’s market. The company has a sound excess of loss retrocession program in place with highly rated reinsures with an excellent level of security.
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 a stable, upward trend of profitable operating results that improve metrics to a point where they 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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