Golden Tree Reinsurance has been awarded a financial strength rating of B+ with a stable outlook by AM Best.
Golden Tree is a subsidiary of Iris Financial Services (Iris Financial) and is owned ultimately by Springbrook Corporation, a privately held holding company with operations in insurance, financial services and real estate.
AM Best categorised Golden Tree´s balance sheet as strong, with an adequate operating performance, limited business profile and appropriate enterprise risk management. The reinsurer’s capital base has strengthened over time as a result of its sound underwriting practices and capital contributions, AM Best said. In 2019 it sustained profitability mainly through underwriting, enabling the company to generate a return on equity of 56.3 percent.
A more conservative investment strategy is set to support Golden Tree´s results going forward, AM Best said. However, it does not depend on this revenue to achieve positive bottom-line results, the rating agency added.
Golden Tree was established initially in 2015 as a segregated portfolio company. It was licensed in 2019 as a Class 3A insurer in Bermuda, to provide reinsurance capacity for commercial credit and credit life risks as part of the group´s retrocession cover. It has a geographical exposure to Colombia´s insurance market.