A.M. Best Company
08/10/2022 | Press release | Distributed by Public on 08/10/2022 12:06
AM Best Assigns Credit Ratings to Reaseguradora Delta, S.A.
AUGUST 10, 2022 01:50 PM (EDT)
AM Best Assigns Credit Ratings to Reaseguradora Delta, S.A.
CONTACTS:
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Inger Rodriguez Associate Financial Analyst +52 55 1102 2720, ext. 108 [email protected]
Alfonso Novelo |
Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 [email protected]
Jeff Mango |
FOR IMMEDIATE RELEASE
MEXICO CITY - AUGUST 10, 2022 01:50 PM (EDT)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of "bbb" (Good) to Reaseguradora Delta, S.A. (Delta Re) (Panama City, Panama). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Delta Re'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 stable outlooks reflect AM Best's expectations that Delta Re will maintain profitable results driven by prudent risk selection while successfully implementing its territorial expansion.
Delta Re'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 risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The very strong assessment also recognizes the conservative profile of Delta Re's investment portfolio and concentration in certificates of deposit.
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 2021. While investment income contributes to Delta Re's earnings, it is limited by the conservatism of the portfolio. AM Best expects Delta Re to maintain premium sufficiency levels while implementing its growth strategy.
Delta Re, founded in Panama in 2010, offers treaty and facultative reinsurance for several lines of business including fire, surety, construction and engineering, auto, marine aviation and transport, personal liabilities, robbery, personal accidents, and miscellaneous. The majority of its portfolio is composed of treaty contracts, approximately 81%, while facultative reinsurance accounts for 19%. Delta Re is diversified geographically, as the company underwrites premiums in Ecuador, Panama, Dominican Republic and Paraguay though distribution channels that include brokers and alliances with other reinsurers, as well as a managing general agent established in Miami by Delta Re's shareholders. AM Best assesses the company's business profile as neutral.
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.
Negative rating actions could occur if the company's capital base erodes due to significant changes in dividend policy or a deterioration in operating results that would debilitate risk-adjusted capitalization to a point no longer supportive of the current assessment.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Nov. 13, 2020), which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Evaluating Country Risk (Version Oct. 13, 2017)
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- Understanding Global BCAR (Version June 30, 2022)
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- Catastrophe Analysis in AM Best Ratings (Version Oct. 13, 2017)
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- Available Capital & Holding Company Analysis (Version Oct. 13, 2017)
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- Scoring and Assessing Innovation (Version March 5, 2020)
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View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best's Credit Ratings.
- Previous Rating Date: Not Rated
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- Date Range of Financial Data Used: Dec. 31, 2016-March 31, 2022
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This press release relates to rating(s) that have been published on AM Best's website. For additional 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.
AM Best does not validate or certify the information provided by the client in order to issue a credit rating.
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company's financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.
AM Best's credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best's credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.
AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best's rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. 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.