AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" of Ocean International Reinsurance Company Limited (Ocean Re) (Barbados).
The Credit Rating (rating) action follows the Feb. 20, 2020, announcement that Ocean Re and Energy Risk Indemnity Reinsurance Inc. (ERI Re) (Barbados) will merge its operations. The transaction has been executed and consummated, with all the required authorizations and permits obtained from Barbados’ Financial Services Commission (FSC) and relevant regulators. Because of the merger, ERI Re became the major shareholder of Ocean Re, without any changes in Ocean Re’s management team.
The under-review status reflects AM Best’s necessity to reassess the financial strength of Ocean Re after the merger, taking into account its corporate structure, balance sheet strength and revised strategy. The developing implications on the under-review status recognizes the ongoing geographical diversification that could derive from the merger as well as potential improvements in its capital position.
AM Best will review any material changes to Ocean Re’s financial profile to assess the impact on its ratings. If there are no material deviations to the company’s projections, the most likely outcome would be an affirmation of the current ratings.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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