Fitch assigns Barbados-based Ocean Re an A-minus rating

By Isha Marathe

April 30 - (The Insurer) - Fitch Ratings has assigned Barbados-based Ocean International Reinsurance Company an insurance financial strength rating of A-minus, with a stable rating outlook.

Ocean Re's rating reflects its 'very strong' capitalization and financial performance, Fitch said.

The company has two types of business leveraged by its specialized subsidiaries, including a risk-bearing business and a captive business that generates consistent income through fees.

At the year-end of 2024, risk-bearing business accounted for 63% of Ocean Re's gross premium written (GPW) and the captives' segment 37%. The reinsurer's net premium written was $194.5 million, and equity was $166.8 million, distributed 53.8% in property, 39.4% in life and health, 2.9% surety, 2.8% casualty, and 1.1% motor.

"Diversification in business lines and in geographies enhances its risk profile, while types of business between risk-bearing and captives provides income sources diversification," Fitch said.

The overall company profile assessment is scored at 'bbb' with a higher influence on the rating.

Fitch said Ocean Re's capitalization and leverage are 'very strong' at 'aa minus,' supported by its year-end 2024 and year-end 2023 risk-based Prism model score at 'extremely strong' category and offset by strong operating leverage ratios.

Its net premium written capital scores are rated 'a minus,' and at year-end 2024, NPW-to-capital was 1.2 times higher compared to its five-year average of 1.0 times, as its growth pace is more accelerated than capital.

Fitch added that Ocean Re's capital and earnings are adequately protected from large exposures by its retrocession program and good credit quality reinsurers. Ocean Re has in place excess of loss retrocession programs for catastrophe risks and for other risks. Net annual aggregate catastrophe losses to capital at year-end 2024 were 9.8%.

Guillermo Eslava-led Ocean Re also holds an A-minus rating from AM Best.

When affirming the rating in February this year AM Best highlighted that Ocean Re offers a diversified product mix worldwide with a relevant presence in Latin America.