Created: Jul 24, 2024 06:15 PM
Lion Re’s registered workplace is at 22 Victoria Road, Hamilton (File {photograph})
AM Greatest has affirmed the monetary energy ranking of A (Wonderful) and the long-term issuer credit standing of “a” (Wonderful) of Bermudian-based Lion Reinsurance Firm Ltd.
The outlook of those credit score rankings is secure.
Lion Re is a subsidiary of ASSA Compañía Tenedora, SA, and is owned finally by Grupo ASSA SA, a monetary companies holding firm publicly traded on the Panama Inventory Change.
The rankings mirror Lion Re’s steadiness sheet energy, which AM Greatest assesses as very sturdy, in addition to its enough working efficiency, restricted enterprise profile and applicable enterprise threat administration.
Lion Re is a Bermudian-based reinsurer assuming dangers from ASSA Tenedora associates for property, auto, legal responsibility, marine, group life (short-term), well being and miscellaneous companies.
Integrated in Bermuda in 2011, Lion Re is a Class 3A insurer licensed and registered by the Bermuda Financial Authority.
AM Greatest mentioned it recognised the strategic function that Lion Re aimed to attain within the group’s total regional technique; nonetheless, Lion Re’s enterprise profile was thought-about restricted given its accessibility to markets when put next with different industrial reinsurers.
The company mentioned Lion Re´s capital base was supportive of risk-adjusted capitalisation being assessed on the strongest degree, as measured by Greatest’s capital adequacy ratio. Lion Re continues to carry out an essential function in ASSA Tenedora’s technique because it consolidates operations within the Central America area by offering reinsurance capability.
AM Greatest mentioned: “Lion Re’s enough degree of working efficiency outcomes from its affiliated insurance coverage corporations within the Central America area, in addition to its affiliation to Grupo ASSA, which supplies synergies, working efficiencies and assure help.
“The corporate critiques its underwriting tips constantly to enhance the efficiency of its enterprise segments which are deviating from targets.
“Funding earnings, primarily based on a conservative technique, continues to help Lion Re’s outcomes; nonetheless, the corporate just isn’t depending on this income to attain optimistic bottom-line outcomes.
“In 2023, the corporate’s constant profitability was mirrored in a 36 per cent return-on-equity ratio.”
The company added: “Components that might result in optimistic ranking actions embrace a higher diploma of perceived integration of Lion Re’s function inside the group whereas sustaining its assured help of its guardian.
“Components that might result in damaging ranking actions embrace a fabric lack of capital that reduces risk-adjusted capitalisation to a degree that doesn’t help the rankings, or if the strategic significance of Lion Re to the group diminishes.”