AM Best Upgrades Credit Ratings of Eureka-Re SCC
01 Agosto 2024 - 1:00PM
Business Wire
AM Best has upgraded the Financial Strength Rating to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating
to “a-” (Excellent) from “bbb+” (Good) of Eureka-Re SCC (Eureka)
(Barbados). The outlook of these Credit Ratings (ratings) has been
revised to stable from positive.
The ratings reflect Eurekas’s 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 rating upgrades reflect the company’s growing capital base,
highlighted by well-established and functioning ERM practices that
have safeguarded its capital base while stabilizing results.
Eureka, established in Barbados in 2009, is a regional reinsurer
in Latin America. The company underwrites mostly lower layers of
facultative programs, originated through managing general agents.
While most of the premium taken by the company is sourced from
Latin America, it has diversified internationally, investing in
seasoned personnel and systems. Eureka’s business profile is
assessed as neutral, recognizing the company’s evolving geographic
diversification and its capacity to assume risks; AM Best will
continue to monitor these assumed risks and company’s performance
in newer territories.
AM Best assesses Eureka’s balance sheet strength at the very
strong level, as the availability and quality of its capital have
strengthened through positive bottom line results, limited risk
takings and a policy to reinvest earnings. The company is subject
to catastrophe-related losses, and as a result, has implemented a
stringent risk modeling procedure and adjusted its retentions
according to its experience, further enhancing its reinsurance
program with a high-quality panel of reinsurers. Investments are
set to match insurance obligations, with a proprietary portfolio
aimed at achieving yield and developing business opportunities. AM
Best will continue to monitor those investments and the impact on
the company’s risk-adjusted capitalization.
AM Best assesses Eureka’s operating performance as adequate, as
it has sustained profitable performance in 2023 through its
technical capacities. This was evident from Hurricane Otis, which
occurred without any major impact to company results or its balance
sheet. These results reflect Eureka’s continuous strengthening of
its ERM practices and adjustments in underwriting and retentions
that have successfully adapted to the evolving business
landscape.
Negative rating actions could take place if risk-adjusted
capitalization diminishes due to undertaking higher risks mainly in
underwriting or investing. Positive rating actions could take place
in the medium term if there is a positive trend in the operating
performance backed by stability in net results and quality of
underwriting.
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.
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Elí Sánchez Director Analytics +52 55 9085
7503 eli.sanchez@ambest.com Alfonso Novelo Senior
Director, Analytics +52 55 9085 7501
alfonso.novelo@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com