Ocean International Reinsurance Company Limited (Ocean Re) has had its Financial Strength Rating upgraded to A (Excellent) from A- (Excellent) and its Long-Term Issuer Credit Rating upgraded to “a” (Excellent) from “a-” (Excellent) by AM Best, with the outlook of these ratings revised to stable from positive.
AM Best notes that the upgrade reflects Ocean Re’s “very strong” balance sheet strength and operating performance, neutral business profile, and appropriate enterprise risk management. The rating upgrade also accounts for Ocean Re’s disciplined underwriting.
The company’s operating performance metrics are strong, complemented by growth targets based on its diversified geographical exposures, new business, and successful growth of the risk-bearing portfolio, explained AM Best.
Ocean Re is a Barbados-based reinsurer, licensed as a Class 2 insurance company, offering a diversified product mix globally and a strong presence in Latin America.
It also offers facultative reinsurance programs fully funded for its clients’ projected ultimate losses. Ocean Re’s business development strategy clearly identifies an increase in the proportion of traditional reinsurance in its portfolio, as compared with its captive portfolio, explained AM Best.
The reinsurer has continued its regional geographic footprint expansion, with a presence in 86 countries as of December 2024, and the ability to further diversify its insured risks throughout Latin America, Asia, the Middle East and North Africa, among other regions.
Additionally, it has also acquired some of its business partners’ operations (including personnel) to improve its underwriting further, gaining expertise and exclusivity over those channels, regions and markets.
According to Best’s Capital Adequacy Ratio (BCAR), Ocean Re’s risk-adjusted capitalisation is at the strongest level, and has benefited from profitable results for the first nine months of 2025.
AM Best said, “Ocean Re’s operating performance in 2024, and up to September 2025, resulted in net income, due to good levels of premium sufficiency derived from the performance of its expanding traditional reinsurance lines and from the nature of its captive business.”
Additionally, broader geographic diversification could reflect an improvement in the required capital over the medium term; however, AM Best will continue to monitor the influence of the holding company on Ocean Re’s balance sheet strength, due to its financial leverage and evolving corporate structure.
The credit ratings agency will continue to monitor the reinsurer in the future for any changes in the ratings or outlook.
