AM Best has upgraded Lion Reinsurance Company’s financial strength rating to A (excellent) from A-.
The rating agency said the upgrade reflected Lion Re’s balance sheet strength and operating performance, as well as its neutral business profile and appropriate enterprise risk management.
AM Best said it expects Lion Re to continue playing an important role in ASSA Tenedora’s strategy, as it consolidates operations in new regions by providing reinsurance capacity while maintaining its capital base expansion. It noted that Lion Re consistently reviews its underwriting guidelines to improve the performance of business segments that are deviating from targets.
“Investment income, based upon a more conservative strategy, continues to support Lion Re’s results,” AM Best said. “However, the company is not dependent on this revenue to achieve positive bottom-line results.”
Lion Re is a Bermuda-based subsidiary of ASSA Compañía Tenedora and is listed on the Panama Stock Exchange. It assumes risks from ASSA Tenedora and affiliates for property, liability, marine, life, health and miscellaneous businesses. It provides reinsurance as part of the group´s retrocession cover with a geographical exposure to Central America’s insurance market.
The outlook for the reinsurer remains stable.