AM Best Confirms Redbridge Insurance Company Limited Credit Ratings – InsuranceNewsNet

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MEXICO CITY–(BUSINESS WIRE)–
AM Best affirmed the financial strength rating of B++ (good) and the issuer’s long-term credit rating of “bbb” (good) from Redbridge Insurance Company Limited (RICL) (St James, Barbados). The outlook for these Credit Ratings (ratings) is stable.

The ratings reflect the strength of RICL’s balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate management of business risks.

The ratings also reflect the company’s strongest risk-adjusted capitalization at the end of 2021, as measured by Best’s capital adequacy ratio (BCAR), a strong business strategy and its management team. experienced. The small size of the business and the challenging environment in which it operates partially offset these positive rating factors, which could put pressure on future growth and underwriting performance.

RICL is an insurance and reinsurance company founded in December 2010and is part of Redbridge Holding, LLC (Redbridge Holding), a company specializing in insurance and reinsurance management. Most members of the management team have worked together for many years in the development and expansion of RICL; therefore, the company has experienced significant growth over the past few years. In 2020, a set of companies originally falling under Redbridge Holding have been incorporated into the organizational structure of the RICL. These companies provide their services primarily to RICL, reinforcing management’s commitment to developing RICL.

RICL’s primary business is health insurance, with a comprehensive network of operations that has enabled growth in Latin America and Caribbean markets. From December 2021, health insurance accounted for 92% of RICL’s portfolio, with life insurance accounting for the remaining 8%. The company is geographically diversified in 30 countries in the Caribbean and Latin Americawith its greatest concentration in Venezuela (21%).

Two USD 1 million capital contributions in 2019 improved the risk-adjusted capitalization of RICL. From 2020, risk-adjusted capitalization reflects the integration of new entities into the organization. Overall, the balance sheet appears stronger after consolidation, but it remains subject to volatility related to the distribution and growth of the company’s net business portfolio.

The loss ratio of RICL deteriorated in 2021 compared to the results of the previous year; however, after the integration of the new entities into the organization in 2020, the cost-revenue structure of the business changed, which improved profitability despite the increase in claims. The company has gradually increased its retention, but has maintained its underwriting at a healthy volume relative to the growing capital base, and is expected to maintain underwriting leverage metrics in the near term.

Positive rating actions could occur as a result of continued improvement in operating performance as the company successfully executes its business expansion. Negative rating actions could occur if premium growth or deteriorating underwriting results erode the company’s capital base and reduce risk-adjusted capitalization to a level that no longer supports ratings. Negative rating actions could also arise following a deterioration in the profile of the holding company of RICL.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limits of the credit score notice, please consult Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based at United Statesthe company does business 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.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Olga RuboFRM

Senior Financial Analyst

+52 55 1102 2720, ext. 134

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200 ext. 5159

[email protected]

Alphonse Novelo
Senior Manager, Analytics

+52 55 1102 2720, ext. 107

[email protected]

Jeff Mango
General director,

Communications Strategy

+1 908 439 2200 ext. 5204

[email protected]

Source: AM Best

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