AM Best Affirms Credit Ratings of Barents Re Reinsurance Company, Inc. and Its Affiliate

AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Barents Re Reinsurance Company, Inc. (Barents Re) (Cayman Islands) and its affiliate, Barents Reinsurance S.A. (Barents Re Lux) (Luxembourg). The outlook of these Credit Ratings (ratings) is negative.

The ratings reflect Barents Re’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The negative outlooks reflect volatility in the company’s operating performance metrics over the past several years, as well as the uncertainty of its global business expansion. AM Best will remain attentive to Barents Re’s performance through its expansion initiatives. While stability is expected, failure to execute strategic plans successfully is likely to result in negative rating actions.

The rating affirmations reflect Barents Re’s risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and geographical diversification. Limiting the ratings is the shifting regional composition of Barents Re’s portfolio and the uncertainty regarding the impact on the company’s level of profitability.

See the full article here

AM Best Press release – Spanish version

AM Best Press release – English version