Lion Re rating affirmed by AM Best

AM Best has affirmed the Financial Strength Rating of A Excellent of Bermuda-based reinsurer Lion Reinsurance Company. The outlook of the rating is stable.

Lion Re is a subsidiary of Panama-based financial services and insurance company ASSA Compañía Tenedora and is owned ultimately by Grupo ASSA, which is traded on the Panama Stock Exchange.

The ratings reflect Lion Re´s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Lion Re is a Bermuda-based reinsurer assuming risks from ASSA Tenedora and affiliates for property, liability, marine, group life (short term), health and miscellaneous businesses. AM Best said recognises the strategic role that Lion Re aims to achieve in the group’s overall regional strategy; however, Lion Re’s business profile is considered limited given its accessibility to markets when compared with other commercial reinsurers.

Lion Re´s capital base is supportive of risk-adjusted capitalization being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), while it continues to perform an important role in ASSA Tenedora’s strategy as it consolidates operations in the Central American region, by providing reinsurance capacity.

Best said: "Lion Re’s adequate operating performance results from its affiliated insurance companies in the Central American region, as well as its affiliation to Grupo ASSA, which provides synergies, operating efficiencies and guarantee support.

"The company consistently reviews its underwriting guidelines to improve the performance of business segments that are deviating from targets. Investment income, based on a conservative strategy, continues to support Lion Re’s results; however, the company is not dependent on this revenue to achieve positive bottom-line results."