MEXICO CITY, July 22, 2022–(BUSINESS WIRE)–AM Greatest has affirmed the Monetary Power Ranking of B++ (Good) and the Lengthy-Time period Issuer Credit score Ranking of “bbb” (Good) of Redbridge Insurance coverage Firm Restricted (RICL) (St. James, Barbados). The outlook of those Credit score Scores (scores) is steady.
The scores mirror RICL’s stability sheet energy, which AM Greatest assesses as very robust, in addition to its ample working efficiency, restricted enterprise profile and applicable enterprise danger administration.
The scores additionally mirror the corporate’s strongest risk-adjusted capitalization as of year-end 2021, as measured by Greatest’s Capital Adequacy Ratio (BCAR), sound enterprise technique and its skilled administration workforce. Partially offsetting these optimistic score components are the small dimension of the corporate and the difficult surroundings by which it operates, which might stress future progress and underwriting efficiency.
RICL is an insurance coverage and reinsurance firm based in December 2010, and is a part of Redbridge Holding, LLC (Redbridge Holding), an organization specialised within the administration of insurance coverage and reinsurance. Most members of the administration workforce have labored collectively for a few years in creating and increasing RICL; consequently, the corporate has achieved vital progress lately. Throughout 2020, a set of firms initially falling beneath Redbridge Holding had been included into the organizational construction of RICL. These firms present their companies primarily to RICL, additional bolstering administration’s dedication to increasing RICL.
RICL’s essential line of enterprise is medical insurance, with an entire community of operations that has enabled progress within the Latin American and Caribbean markets. As of December 2021, medical insurance composed 92% of RICL’s portfolio, with life insurance coverage representing the remaining 8%. The corporate is diversified geographically amongst 30 international locations within the Caribbean and Latin America, with its largest focus in Venezuela (21%).
Two USD 1 million capital contributions in 2019 led to enchancment in RICL’s risk-adjusted capitalization. From 2020 and onward, risk-adjusted capitalization displays the incorporation of the brand new entities to the group. Total, the stability sheet seems strengthened after the consolidation, however it’s nonetheless topic to volatility derived from the corporate’s web enterprise portfolio distribution and progress.
RICL’s loss ratio deteriorated in 2021 in contrast with previous-year outcomes; nevertheless, after the incorporation of the brand new entities into the group in 2020, the cost-revenue construction of the corporate has shifted, and this improved profitability regardless of the rise in claims. The corporate has progressively elevated its retention, however maintained its underwriting at a wholesome quantity with respect to the rising capital base, and is predicted to take care of underwriting leverage metrics within the close to time period.
Optimistic score actions might happen on account of continued enchancment in working efficiency whereas the corporate efficiently executes its enterprise growth. Unfavorable score actions might happen if premium progress or deteriorating underwriting outcomes erode the corporate’s capital base and scale back risk-adjusted capitalization to a degree that now not helps the scores. Unfavorable score actions might additionally happen on account of a deterioration within the profile of RICL’s holding firm.
This press launch pertains to Credit score Scores which have been revealed on AM Greatest’s web site. For all score info referring to the discharge and pertinent disclosures, together with particulars of the workplace liable for issuing every of the person scores referenced on this launch, please see AM Greatest’s Latest Ranking Exercise net web page. For extra info concerning the use and limitations of Credit score Ranking opinions, please view Information to Greatest’s Credit score Scores. For info on the correct use of Greatest’s Credit score Scores, Greatest’s Efficiency Assessments, Greatest’s Preliminary Credit score Assessments and AM Greatest press releases, please view Information to Correct Use of Greatest’s Scores & Assessments.
AM Greatest is a world credit standing company, information writer and knowledge analytics supplier specializing within the insurance coverage business. Headquartered in the USA, the corporate does enterprise in over 100 international locations with regional workplaces in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico Metropolis. For extra info, go to www.ambest.com.
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