AM Best has reaffirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (ICR) of “bbb” (Good) for Sura Re Ltd. (Sura Re), based in Bermuda. The outlook for these credit ratings is stable.
The ratings reflect Sura Re’s solid balance sheet, which AM Best evaluates as very strong, along with its adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM).
Sura Re is the captive reinsurance subsidiary of Suramericana S.A. (Sura), a Colombian insurance group that is 81.1% owned by Grupo de Inversiones Suramericana S.A. Established in Bermuda as a Class 3A insurer in December 2015, Sura Re obtained a Class C insurance license in April 2022. The company primarily reinsures property and casualty risks underwritten by Sura’s subsidiaries in Latin America, including Chile, Colombia, Mexico, Panama, and the Dominican Republic. AM Best acknowledges Sura Re’s growing role in the group’s regional strategy, as evidenced by its expanding geographic reach.
AM Best considers Sura Re’s balance sheet strength to be very strong, supported by its risk-adjusted capitalization at the highest level, as measured by Best’s Capital Adequacy Ratio (BCAR). In 2023, the company’s capital requirements increased due to higher premiums retained as part of its growth strategy. AM Best expects capital requirements to rise in line with increased capital deployment, while Sura Re maintains its strong risk-adjusted capitalization. The company’s asset-liability management follows a conservative investment policy aimed at maintaining liquidity to meet obligations in both timing and currencies. AM Best also views the company’s ERM as appropriate, benefiting from the expertise and support of Sura’s management team.
As of December 2023, Sura Re reported its fifth consecutive year of positive net income since its inception, driven by solid underwriting practices and steady commission income. AM Best is monitoring macroeconomic conditions and their potential impact on the company’s investment returns. As a captive insurer within one of Latin America’s largest insurance groups, Sura Re enjoys flexibility in managing premium growth and risk, allowing it to efficiently balance capital position and future returns. Therefore, AM Best considers the company’s operating performance adequate for its current ratings.
Negative rating actions could occur if Sura Re fails to meet financial performance targets, resulting in adverse impacts on capital or risk-adjusted capitalization, whether due to business decisions, reduced importance to its financial group, or deteriorating macroeconomic conditions. While no positive rating actions are expected in the short term, they could occur if Sura Re continues to prudently manage risk and further strengthen its risk-adjusted capitalization.
This press release relates to a rating(s) that has been published on AM Best’s website. For further details on the rating release, including the office responsible for each individual rating referenced, please visit AM Best’s Press Release webpage. Additional information on the use and limitations of credit rating opinions can be found in Best’s Credit Rating Guide. For more information about the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Preliminary Credit Assessments, and AM Best press releases, please visit the Guide to Proper Use of Best’s Ratings & Assessments.
About AM Best
AM Best is a global credit rating agency and information provider specializing in the insurance industry. Headquartered in the United States, AM Best operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. For more information, visit www.ambest.com.
