AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Helvetica Re Rückversicherung AG Corporation (Helvetica) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Helvetica’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The company is Barbados-domiciled and began commercial operations in 2022, underwriting surety for renewable energy and infrastructure developments mainly in Spain with a geographic presence in Latin America markets. Until 2025, the company was originally named Berliner Re Reinsurance Company Inc.

The ratings of Helvetica also reflect its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), adequate reinsurance program and conservative investment strategy aimed at providing liquidity and maintaining appropriate asset-liability management. Partially offsetting these positive rating factors are Helvetica’s business profile, which is bounded by its current concentration in a single business line and distribution channel, as well as the highly competitive landscape in its target geographic markets’ surety bond segment amid a challenging economic environment.

Helvetica’s risk-adjusted capitalization remains at the strongest level, underpinned by a robust capital base and low underwriting leverage in conjunction with its conservative investment allocation. In AM Best’s view, the company’s operating performance is pressured by its high administrative expense structure, due to its startup nature. However, the company’s continuously expanding top line in conjunction with well-contained claims and consistent inflow of investment income is expected to help it maintain profitable bottom line results.

Helvetica constantly reviews its underwriting guidelines to improve the performance of its businesses. Additionally, reinsurance commissions stemming from its quota share agreement with counterparties that have a good level of security, will gradually contribute to offset its high operating expense structure. Helvetica posted a net income of USD 2.3 million within its first year of operation in 2022, followed by USD 8.7 million in 2024, according to latest audited financial statements.

Negative rating actions could occur if Helvetica’s high growth levels, in conjunction with higher country risk tiers, deteriorate its balance sheet strength to levels no longer supportive of the strongest assessment level. Additionally, negative rating actions could occur if underwriting results fall short of AM Best’s expectations and deteriorate to levels no longer supportive of an adequate operating performance assessment. Positive rating actions, while unlikely in the medium term, could occur if the company is able to achieve geographic expansion successfully, while maintaining premium sufficiency.

 

Fuente: AM Best

Enlace: www.ambest.com