Charp Re, Ltd., a family-owned reinsurance company established in 2018 in the Turks and Caicos Islands, has been assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) by AM Best, with both ratings carrying a stable outlook.
The ratings agency said its assessment reflects Charp Re’s very strong balance sheet strength, alongside adequate operating performance, a limited business profile and appropriate enterprise risk management (ERM).
Charp Re works with insurers and brokers across multiple reinsurance lines, with the company describing its approach as combining technical judgement with the flexibility to address individual client requirements. Since launching, Charp Re has expanded its reinsurance activities and developed relationships with cedants and reinsurance brokers, supported by retrocessionaires.
The company’s portfolio has become increasingly diversified across markets and lines of business. Based on gross written premiums in 2025, group life represented 38.3% of Charp Re’s portfolio, followed by property at 22.1% and financial lines at 13.4%. Other classes accounted for the remaining 26.2%.
Geographically, Charp Re’s business spans 32 countries. Latin America and the Caribbean accounted for 71% of the portfolio, while 19% came from Europe and MENA and 10% from Asia. Despite this international presence, AM Best assesses Charp Re’s overall business profile as limited.
AM Best’s assessment of Charp Re’s balance sheet strength is underpinned by what the ratings agency describes as its strongest risk-adjusted capitalisation, measured using Best’s Capital Adequacy Ratio (BCAR). The assessment also takes into account Charp Re’s diversified investment portfolio, solid liquidity position, generally positive underwriting and operating cash flows, and comprehensive reinsurance arrangements.
The company’s operating performance has been assessed as adequate by AM Best. The ratings agency said Charp Re has generated stable positive bottom-line results, with underwriting income providing the main support for its performance.
Charp Re’s enterprise risk management framework is based on the 2017 COSO report. AM Best considers the company’s ERM to be appropriate in relation to its operations and risk profile.
Looking ahead, AM Best said there could be scope for positive rating action if Charp Re successfully executes its diversification strategy while maintaining profitability and capital adequacy at levels consistent with its existing ratings. The ratings agency also identified sustained profitable operating performance as a potential factor supporting positive rating action.
Conversely, AM Best said negative rating action could follow if volatility in Charp Re’s underwriting performance were to weaken profitability and erode its capital base.
