AM Best Assigns Credit Ratings to Reaseguradora Santo Domingo, S.A.

JULY 03, 2024 03:21 PM (EDT)

AM Best Assigns Credit Ratings to Reaseguradora Santo Domingo, S.A.

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FOR IMMEDIATE RELEASE

MEXICO CITY - JULY 03, 2024 03:21 PM (EDT)
AM Best has assigned a Financial Strength Rating of B (Fair) and a Long-Term Issuer Credit Rating of "bb+" (Fair) to Reaseguradora Santo Domingo, S.A. (REASANTO) (Dominican Republic). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect REASANTO's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

REASANTO is a reinsurance company founded in 1973 in Santo Domingo, Dominican Republic, where it is currently located. The company focuses its product offerings in the fire and allied business lines in the Dominican Republic. Business profile is considered limited given its geographic and business line concentration.

REASANTO's balance sheet strength assessment of strong is based on a strong level of risk-adjusted capitalization in 2023, as measured by Best's Capital Adequacy Ratio (BCAR). The company continues to adjust its exposures to probable maximum losses (PMLs) through active management of its reinsurance program, aiming to reduce volatility in its capital base. Mitigating these factors is a conservative investment strategy and an adequate reinsurance panel.

Operating performance is assessed as adequate, driven by consistent net income that is backed by contained expenses and claims targeted to diminish deviations in REASANTO's budget and improve its underwriting quality. The company's ERM is considered appropriate with defined policies and procedures to maintain risk tolerance levels. These are well-adhered to and reviewed periodically.

The stable outlooks reflect AM Best expectation that the company's risk-adjusted capitalization will be maintained in the current levels as its business strategy to expand geographically deploys.

Positive rating actions could occur if the company's balance sheet strength improves as a result of a sustained growth in capital base as well as its prudent management supportive of stable risk-adjusted capitalization levels.

Negative rating actions could take place if the company's capital base erodes from weakened operating performance results.

The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Jan. 18, 2024), which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

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• Available Capital and Insurance Holding Company Analysis (Jan. 18, 2024)
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• Understanding Global BCAR (March 7, 2024)
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• Evaluating Country Risk (June 6, 2024)
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• Catastrophe Analysis in AM Best Ratings (Feb. 8, 2024)
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• Scoring and Assessing Innovation (Feb. 27, 2023)
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View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best's Credit Ratings.

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• Previous Rating Date: Not rated.
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• Initial Rating Date: Not rated.
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• Date Range of Financial Data Used: Dec. 31, 2018-March 31, 2024
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Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on AM Best's website. For additional 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.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company's financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.