A.M. Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" of African Reinsurance Corp. (Africa Re) (Nigeria). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings actions follow a change in the corporation's capital structure, namely the removal of the rights of Class A shareholders to sell their shares back to Africa Re. The unique feature of these historical put options previously caused A.M. Best concern regarding the permanence of the corporation's capital structure.
The ratings reflect Africa Re's balance sheet strength, which A.M. Best categorizes as strongest, as well as its favorable business profile, strong operating performance and appropriate enterprise risk management framework.