AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for Genesis Global Insurance (SAC) Ltd. (Genesis), based in Nassau, Bahamas. The outlook for these ratings is stable.
These ratings reflect Genesis’ strategic role as a subsidiary of La Colonial, S.A. – Compañía de Seguros (La Colonial), which AM Best assesses as having the strongest balance sheet strength on a consolidated basis. The ratings also account for Genesis’ adequate operating performance, neutral business profile, and sound enterprise risk management.
Genesis benefits from its affiliation with La Colonial, a leading insurer in the Dominican Republic, supported by a robust parental guarantee established in September 2022. The company is fully integrated into La Colonial’s core processes and strategic initiatives. However, there are risks associated with being a startup company, including the challenges of executing its business plan and the concentration in its distribution channel and product offerings.
Genesis is a reinsurance startup entirely owned by Altos International LLC, which is fully owned by La Colonial. Its primary function is to absorb risk exposures currently managed by the market or retained by La Colonial. Genesis’ capacity is managed through La Colonial’s reinsurance broker, Wahr Re.
Genesis provides general insurance covering risks such as motor vehicles, property, and liability. As a startup, it faces concentration risks in its distribution channel and exposure to catastrophe insurance. As of December 2023, Genesis reported a net income of USD 3.5 million.
Genesis is integrated into La Colonial’s group rating unit, reflecting AM Best’s expectation that La Colonial will provide full financial support to Genesis. This is supported by a strong parental guarantee and explicit capital backing, as well as Genesis’ role in diversifying La Colonial’s operations beyond the Dominican Republic.
Should La Colonial experience positive rating actions due to improved risk-adjusted capitalization and profitability, similar positive actions could follow for Genesis. Conversely, negative rating actions on La Colonial, stemming from major capital changes or diminished balance sheet strength, could result in corresponding negative actions for Genesis.
