AM Best Assigns Credit Ratings to Redbridge Insurance Company Limited
MEXICO CITY--(BUSINESS WIRE)--May 23, 2019--
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” to Redbridge Insurance Company Limited (RICL) (St. James, Barbados). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect RICL’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect the company’s strong risk-adjusted capital and sound business strategy, as well as its experienced management team. Partially offsetting these positive rating factors is the small size of the company, and the competitive environment in which it operates, which could pressure future growth and underwriting performance.
RICL is an insurance and reinsurance company founded in December 2010, and part of Redbridge Holding, Inc., a company specialized in the management of insurance and reinsurance. Most members of the management team have worked together for many years in developing and expanding RICL, which has achieved significant growth in recent years.
RICL’s main line of business is health insurance, with a complete network of operations that has enabled growth in the Latin American and Caribbean markets. As of December 2018, RICL’s portfolio was comprised 83% by health, and 17% by life; it is diversified geographically among 23 countries in the Caribbean and Latin America, with a larger concentration in Mexico (23.9%).
The continuing improvement in RICL’s risk-adjusted capitalization is mainly a result of two USD 1 million capital contributions during 2019. In addition, the company’s balance sheet strength is reinforced by its reinsurance program placed with reinsurers with an excellent level of security, nevertheless the concentration in one particular reinsurer limits AM Best’s view on balance sheet strength. Additional capital contributions will be key for the future balance sheet strength assessment.
RICL’s overall underwriting results have improved from the past years, and combined ratios have remained below the 100% threshold. In addition, the RICL’s prudent underwriting practices have maintained the loss ratio at stable levels. As of December 2018, RICL has gradually increased its retention, but continued underwriting a healthy business volume with respect to its growing capital base, which helped reduce the company’s premium leverage ratios.
Positive rating actions could occur if the company’s risk-adjusted capital further strengthens as a result of capital contributions, or from significant improvement in its bottom-line results. 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 the ratings.
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 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases .
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: MEXICO EUROPE CENTRAL AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 05/23/2019 02:15 PM/DISC: 05/23/2019 02:16 PM