enterprise risk management (ERM). The ratings also take into account the implicit and explicit support Ocean Re receives from its parent, Global Life Reinsurance Limited, as well as its ultimate parent, Enstar Group Limited.
The positive outlooks reflect Ocean Re’s improved risk-adjusted capitalization, driven by strong internal capital generation and the continued protection provided by its comprehensive retrocession program. Additionally, the company has shown a strong performance in its underwriting results and a consistent investment income, contributing to its overall operating performance.
Ocean Re continues to maintain a solid business profile as a global reinsurer, with a diverse book of business spread across different geographical regions and lines of business. The company’s ERM practices have also been deemed appropriate, as it effectively manages and mitigates its various risks.
The ratings also acknowledge the support provided by Ocean Re’s parent company, Global Life Reinsurance Limited, which has demonstrated a strong commitment to supporting Ocean Re’s strategic initiatives and business development.
While the outlooks have been revised to positive, factors that could lead to positive rating actions for Ocean Re include a sustained improvement in its underwriting performance, continued strong risk-adjusted capitalization, and further diversification of its business.
Conversely, negative rating actions could occur if there is a significant deterioration in Ocean Re’s risk-adjusted capitalization, a sustained decline in its underwriting and operating performance, or a material change in the support provided by its parent company.
AM Best is a global credit rating agency with a unique focus on the insurance industry. It has been providing credit ratings and financial data services to the insurance industry for over a century, helping market participants make informed decisions.
The company’s ratings and analysis are recognized as a benchmark for assessing the financial strength and creditworthiness of insurers and reinsurers worldwide. Its ratings are based on a comprehensive evaluation of an insurer’s balance sheet strength, operating performance, business profile, and enterprise risk management.
AM Best’s ratings are widely used by insurance professionals, investors, and regulators to assess the creditworthiness of insurance companies, and its opinions are highly regarded in the industry.
In the case of Ocean International Reinsurance Company Limited (Ocean Re), AM Best has revised the outlooks to positive from stable and affirmed its Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent). This revision reflects Ocean Re’s strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management. It also takes into account the support provided by its parent company, Global Life Reinsurance Limited, and its ultimate parent, Enstar Group Limited. The positive outlooks are a result of Ocean Re’s improved risk-adjusted capitalization, strong underwriting results, and consistent investment income. However, positive rating actions will depend on continued improvement in underwriting performance, risk-adjusted capitalization, and business diversification. Conversely, negative rating actions could occur if there is a significant deterioration in Ocean Re’s risk-adjusted capitalization, underwriting and operating performance, or support from its parent company. AM Best’s ratings and analysis are highly regarded in the insurance industry as a benchmark for assessing the financial strength and creditworthiness of insurers and reinsurers worldwide.
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