Barents Re's ratings by A.M. Best remain unchanged after the company's re-domiciling to the Cayman Islands
The same goes for Barents Re's subsidiary, Barents Reinsurance S.A. (Barents Re Lux) (Luxembourg), The outlook of these Credit Ratings (ratings) remains stable.
On June 8, 2018, the Cayman Islands Monetary Authority licensed Barents Re as a Class D Insurer, successfully completing the change of domicile from Panama to the Cayman Islands. A.M. Best has determined that the effect of this change does not alter its view of the company's or its subsidiary's ratings.
Earlier, on 6 April, A.M. Best has removed from under review with negative implications and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" of Barents Reinsurance S.A. (Barents Re Lux) (Luxembourg). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings were placed under review with negative implications in October 2017 due to significant deviations between the financial forecasts and business plan presented to A.M. Best by Barents Re Lux as part of its initial rating review in November 2016, and those presented in 2017.
The ratings have been removed from under review as A.M. Best has completed its assessment of the impact of the revised forecasts and business plan on Barents Re Lux's rating fundamentals, as well as changes to the level of parental support for the company. In December 2017, Barents Re Reinsurance Company, Inc.(Barents Re Panama) (Panama) provided a guarantee in favour of Barents Re Lux. Barents Re Panama owns 51% of Barents Re Lux's direct parent, BRM Barents SCA (Luxembourg).
The rating affirmations follow the increase in explicit parental support and the subsequent inclusion of Barents Re Lux in the rating unit of Barents Re Panama. Barents Re Lux, which started writing business in 2016, is important to the Barents Re group's strategic plan to grow its European-placed reinsurance business. Explicit support now includes the parental guarantee, as well as significant internal reinsurance support.
The ratings of Barents Re Lux reflect Barents Re Panama's balance sheet strength, which A.M. Best categorises as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.