AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb+' (Good) of
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Ecua Re's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The stable outlooks are derived from Ecua Re's market position and its access to the primary insurance business in
Ecua Re was established in 1977 and is the only domestic reinsurer operating in
The company's largest shareholder is
Ecua Re's balance sheet strength is considered very strong, as risk-adjusted capitalization reflects the company's ability to manage its risk exposures, supported by a comprehensive reinsurance program led by
AM Best views the company's operating performance as strong, given its consistent positive technical performance during the last five years. Additionally, its retrocession profile provides revenue from ceding commissions and mitigates claim costs, as experienced in the 2016 earthquake. As of
Positive rating actions could take place if the company can increase its capital base in a stable manner while achieving the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). Negative rating actions could take place if the company's business growth or available surplus limits AM Best's view of Ecua Re's capitalization, through either an abrupt business increase without capital contributions or a decline in equity from the payment of dividends or negative results.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version
Key insurance criteria reports utilized:
Evaluating Country Risk (Version
Understanding Global BCAR (Version
Catastrophe Analysis in AM Best Ratings (Version
Available Capital & Holding Company Analysis (Version
Scoring and Assessing Innovation (Version
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best's Credit Ratings.
Previous Rating Date:
Date Range of Financial Data Used:
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