AM Best Assigns Credit Ratings to Reaseguradora Santo Domingo, S.A.
July 03 2024 - 4:11PM
Business Wire
AM Best has assigned a Financial Strength Rating of B
(Fair) and a Long-Term Issuer Credit Rating of “bb+” (Fair) to
Reaseguradora Santo Domingo, S.A. (REASANTO) (Dominican Republic).
The outlook assigned to these Credit Ratings (ratings) is
stable.
The ratings reflect REASANTO’s balance sheet strength, which AM
Best assesses as strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
REASANTO is a reinsurance company founded in 1973 in Santo
Domingo, Dominican Republic, where it is currently located. The
company focuses its product offerings in the fire and allied
business lines in the Dominican Republic. Business profile is
considered limited given its geographic and business line
concentration.
REASANTO’s balance sheet strength assessment of strong is based
on a strong level of risk-adjusted capitalization in 2023, as
measured by Best’s Capital Adequacy Ratio (BCAR). The company
continues to adjust its exposures to probable maximum losses (PMLs)
through active management of its reinsurance program, aiming to
reduce volatility in its capital base. Mitigating these factors is
a conservative investment strategy and an adequate reinsurance
panel.
Operating performance is assessed as adequate, driven by
consistent net income that is backed by contained expenses and
claims targeted to diminish deviations in REASANTO’s budget and
improve its underwriting quality. The company’s ERM is considered
appropriate with defined policies and procedures to maintain risk
tolerance levels. These are well-adhered to and reviewed
periodically.
The stable outlooks reflect AM Best expectation that the
company's risk-adjusted capitalization will be maintained in the
current levels as its business strategy to expand geographically
deploys.
Positive rating actions could occur if the company's balance
sheet strength improves as a result of a sustained growth in
capital base as well as its prudent management supportive of stable
risk-adjusted capitalization levels.
Negative rating actions could take place if the company's
capital base erodes from weakened operating performance
results.
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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Juan Pablo Castro Associate Financial Analyst +52 55 1102
2720, ext. 133 juanpablo.castro@ambest.com
Alfonso Novelo Senior Director, Analytics +52 55 1102 2720,
ext. 107 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