Sura Re Limited Achieves Stable Credit Ratings from AM Best
Sura Re Limited’s Credit Ratings Affirmed by AM Best
MEXICO CITY-- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) for Sura Re Ltd. (Sura Re). These ratings reflect a stable outlook, showcasing the company’s strong performance and financial stability.
Understanding Sura Re’s Financial Strength
The ratings are indicative of Sura Re’s robust balance sheet strength, which AM Best categorizes as very strong. The company has demonstrated adequate operating performance alongside a limited business profile and effective enterprise risk management (ERM) practices.
The Role of Sura Re
Sura Re serves as a captive reinsurer for Suramericana S.A. (Sura), a notable insurance group based in Colombia, which is predominantly owned by Grupo de Inversiones Suramericana S.A. Formed in Bermuda as a Class 3A insurer in late 2015, Sura Re obtained approval to function as a Class C insurer in mid-2022. Its principal aim is to engage in property business underwritten by Sura’s affiliates throughout Latin America, thereby fulfilling the group’s strategic objectives across the region.
Capital Adequacy and Risk Management
AM Best's evaluation of Sura Re's balance sheet strength considers its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), finding it more than suitable for the risks the company maintains. As Sura Re progresses in executing strategic objectives and takes on more risk, capital requirements are anticipated to escalate, while it continues to uphold robust risk-adjusted capitalization. The company adopts a conservative investment policy aimed at maintaining liquidity for its obligations across various tenures and currencies.
Operational Performance Insights
In the most recent reporting period, Sura Re has achieved positive financial results for the fifth consecutive year since its inception. This operational success is driven primarily by favorable technical outcomes, stemming from effective underwriting practices and consistent fee income generation. As AM Best evaluates the broader macroeconomic landscape, it remains attentive to how these conditions might influence the company's investment performance.
Outlook and Future Considerations
While no immediate positive rating actions are anticipated, AM Best has indicated that downgrades could occur should Sura Re fail to meet its financial targets or if capital conditions worsen due to resulting decisions or poor macroeconomic conditions. Therefore, maintaining a focus on prudent risk management will be crucial as the company continues to develop its operations.
About AM Best
AM Best stands as a leading agency in ratings for alternative risk transfer entities, boasting a portfolio of over 200 rated companies globally. Their rigorous rating system and independent data continue to provide valuable insights into the insurance market. The ratings can be viewed on AM Best’s official site.
Frequently Asked Questions
What is Sura Re Ltd.?
Sura Re Ltd. is a captive reinsurer operating under Suramericana S.A., serving mainly the Latin American market.
What Credit Ratings were affirmed by AM Best?
AM Best affirmed Sura Re's Financial Strength Rating of B++ and Long-Term Issuer Credit Rating of “bbb”.
What factors influence Sura Re's ratings?
The company’s balance sheet strength, operating performance, and enterprise risk management are critical factors in determining its ratings.
How has Sura Re performed financially?
Sura Re has reported positive net profits for five consecutive years, showcasing its effective operational strategies.
What is AM Best's role in the insurance industry?
AM Best is a global credit rating agency that specializes in insurance, providing ratings, research, and analytics.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
Related Articles
- Copenhagen's Green Tourism Initiative: A Shift for Sustainability
- Copenhagen's Bold Tourism Strategy for a Sustainable Future
- Toyota Sees Continued Production Decline Amid Challenges
- Elon Musk Advocates for Solar Energy as Future Power Source
- Dogecoin Surges 9% as Analysts Predict Major Breakthrough Ahead
- Innovative Art Director Justin Martin to Inspire Art Students
- Wall Street's Uncertainty: Trump vs. Harris Dynamics Explored
- Citi's Long-Term Forecast Reveals Potential Yen Strength
- Japan's Industrial Output Faces Challenges Amid Demand Fluctuations
- Intel Denies Arm's Bid for Product Division Amidst Market Challenges
Recent Articles
- Sinclair, Inc. Raises Political Revenue Forecast for 2024
- First Capital Achieves New Heights with Stock Performance
- Rigel Pharmaceuticals Board Departure Impacts Future Plans
- MillerKnoll, Inc. Reveals Positive Growth in Q1 Fiscal 2025
- Tectonic Therapeutics Advances TX45 for Heart Failure Treatment
- Arq, Inc. Moves Forward with Strategic Stock Offering Plans
- Strategic Investment Partnership Announced by Legacy Fund
- Alternus Clean Energy's Bold Strategies Amid Setbacks
- Understanding the Strategic Importance of Israeli Innovation
- Join BorgWarner for Their Upcoming Third Quarter Call
- MEI Pharma Explores Strategic Alternatives for Growth
- Third Coast Bancshares Announces Generous Cash Dividend for Stockholders
- KTJV Chosen to Enhance Lake Charles LNG Project Efficiency
- Iridium Communications Launches Major Stock Buyback Plan
- Ameris Bancorp Declares Consistent Quarterly Dividend for Shareholders
- Impact of Recent Leadership Changes on Silexion Therapeutics
- LiveOnNY's Remarkable Achievement as a Top NYC Workplace
- Genpact Earns Top Honors in Global Company Rankings
- FedEx Struggles with Earnings Miss, Shares Show Resilience
- Celebrating Motherhood: Momcozy's Impact at NYFW Brand Day
- Join PG&E for an Innovative Exploration of Energy’s Future
- Morgan Herbert William's $15K Investment in Private Shares Fund
- American Textile Company Celebrates Recent Award Recognition
- THG's Earnings Call Reveals Strategic Progress and Future Plans
- Ensurge Micropower Secures NOK 75 Million Through New Shares
- Millicom Leadership Transition: A New Era Begins with Lombardini
- MongoDB Director Shares Insights Following Recent Stock Sale
- Empowering Young Minds: A Focus on Water Conservation Education
- MongoDB Executive Share Transactions Highlight Growth Potential
- Zenas BioPharma Surpasses Expectations in IPO Success
- Paylocity Insider Transaction Highlights Financial Growth Prospects
- Ensurge Micropower ASA's Upcoming Financial Opportunities
- Atlassian CEO Sells Stock Amidst Positive Company Trends
- authID's Recent Grant of Stock Options Boosts Employee Engagement
- FedEx Experiences Decline in First Quarter Earnings Due to Demand
- YHN Acquisition I Limited Successfully Closes $60 Million IPO
- Atlassian's Scott Farquhar Moves Shares: Key Financial Insights
- Altamira Therapeutics Successful Completion of $12 Million Offering
- Impacts of the Fed's Rate Cut on Global Financial Markets
- Alliance Entertainment Achieves Notable Growth and Profitability
- ValOre Metals Unlocks Potential with New CAD $3.5 Million Placement
- Tectonic Therapeutics Reports Positive TX45 Phase 1a Results
- Arq, Inc. Unveils Exciting New Public Stock Offering Plans
- Credit Acceptance Boosts Financing Capacity with New Terms
- Macy’s, Inc. Seeking to Fill Over 31,500 Seasonal Roles
- 89bio Provides Stock Options to New Employee Amid Growth Stage
- Preferred Bank Declares Cash Dividend and Business Highlights
- TechnipFMC Secures Major Subsea Contracts for Brazilian Reserves
- Globavend Holdings Reports Impressive Growth in H1 2024
- Market Reactions to Fed Rate Cut: Impacts and Insights