AM Best Affirms Credit Ratings of Redbridge Insurance Company Limited

SEPTEMBER 06, 2024 01:27 PM (EDT)

AM Best Affirms Credit Ratings of Redbridge Insurance Company Limited

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FOR IMMEDIATE RELEASE

MEXICO CITY - SEPTEMBER 06, 2024 01:27 PM (EDT)
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" (Good) of Redbridge Insurance Company Limited (RICL) (St. James, Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect RICL's balance sheet strength, which AM Best assesses 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 sound business strategy and its experienced management team. Partially offsetting these positive rating factors is the challenging environment in which the company operates, which could pressure future underwriting performance.

RICL is an insurance and reinsurance company founded in December 2010, and is part of Redbridge Holding, LLC (Redbridge Holding), 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; consequently, the company has achieved significant growth in recent years. During 2020, a set of companies within Redbridge Holding were incorporated into RICL's organizational structure. These companies provide services primarily to RICL, further bolstering management's commitment to expanding RICL.

RICL's main line of business is health insurance, with a complete network of operations that has enabled growth in the Latin America and Caribbean markets. As of December 2023, health insurance composed 59% of RICL's portfolio, followed by property and casualty insurance with 26%, travel insurance with 11%, and the remaining 4% in life. The company is diversified geographically among 72 countries, primarily in the Caribbean and Latin America, with its largest concentration in Venezuela (11%).

Since 2020, the company's risk-adjusted capitalization reflects the incorporation of the new entities into the organization. Overall, the balance sheet appears stronger after the consolidation, but is still subject to volatility derived from the company's net business portfolio distribution and growth, as well as from changes in the asset structure.

RICL's loss ratio remained stable with the previous period, still reflecting improvements in the management of the underwriting portfolio. Moreover, after the incorporation of the new entities into the organization in 2020, the cost-revenue structure of the company has shifted, increasing profitability. The company has maintained its retention, with an underwriting portfolio reflecting the business expansion initiatives.

Positive rating actions could occur as a result of the successful execution of RICL's expansion strategy. Negative rating actions could occur if premium growth or underwriting results erode the company's capital base and reduce its risk-adjusted capitalization to a level that no longer supports the ratings. Negative rating actions could also occur as a result of a deterioration in the profile of RICL's holding company.

The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Aug. 29, 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:

· Evaluating Country Risk (Version June 6, 2024)

· Understanding Global BCAR (Version Aug. 1, 2024)

· Available Capital and Insurance Holding Company Analysis (Version Aug. 15, 2024)

· Scoring and Assessing Innovation (Version Feb. 27, 2023)

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.

· Previous Rating Date: Aug. 23, 2023

· Initial Rating Date: May 23, 2019

· Date Range of Financial Data Used: Dec. 31, 2017-Dec. 31, 2023

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