AM Best reaffirms Barents Re’s excellence in the global market

MEXICO CITY, December 11, 2024

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 stable.

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 rating affirmations reflect Barents Re’s risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), the improvement in the company’s corporate governance framework, and consistent profitability. AM Best remains concerned with respect to the execution risk of the strategy generated by the constantly shifting regional composition of Barents Re’s business portfolio.

The ratings of Barents Re Lux reflect its strategic importance to and the support it receives from Barents Re. Barents Re Lux is part of the Barents Re rating unit, and is fundamental to the group’s overall strategy. Barents Re also provides parental guarantee and reinsurance support to Barents Re Lux.

Barents Re’s business portfolio in 2023 grew 7% year-over-year, mainly driven by its specialty lines.  Overall, the Europe-sourced business represents 80% of Barents Re’s portfolio, with the Latin America region generating 12% and the Middle East and North Africa regions holding the rest as of year-end 2023. The company is supported by its diversified and comprehensive reinsurance programs, which are placed among reinsurers with a good level of security, a key characteristic that Barents Re has adopted to enter new business lines and regions prudently.

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AM Best Press release – Spanish version

AM Best Press release – English version