AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of "bbb" to Reunion Re Compania Argentina De Reaseguros SA (Reunion Re) (Argentina). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Reunion Re's balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Reunion Re's balance sheet strength is underpinned by its risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which is at the strongest level. The ratings also reflect the company's sound underwriting practices and investment strategy consistently supporting profitability despite a volatile economic environment, a well-structured reinsurance program, seasoned management team, and synergies provided by its main shareholder. Partially offsetting these positive rating factors are Reunion Re's volatility in bottom line results derived from operating in an economy with high inflation.
Source: A.M. Best Ratings Services, Inc. Used under license.