Black Gold Re’s credit ratings affirmed by AM Best
Black Gold Re’s credit ratings affirmed by AM Best | Insurance Business Canada
Reinsurance
Black Gold Re’s credit ratings affirmed by AM Best
Ratings agency says reinsurer’s outlook is stable
Reinsurance
By
Abigail Adriatico
The credit ratings of Black Gold Re Limited (BGR), a captive reinsurer of Columbia-based integrated energy company Ecopetrol S.A. (Ecopetrol), have been affirmed by credit rating agency AM Best.
AM Best had affirmed the reinsurer’s “B++” financial strength rating as well as its “bbb+” long-term issuer credit rating, stating that the outlook of the credit ratings was stable.
The credit rating agency also said that the reinsurer’s balance sheet strength was very strong, which reflected its ratings along with its operating performance, business profile, and enterprise risk management (ERM).
The firm’s balance sheet strength showed that its capital management strategy and ability to build up capital is very strong. It is expected to maintain a capital buffer while it continues to adjust its risks based on the reinsurance needs of its parent company and the conditions of the reinsurance market.
AM Best also found that the reinsurer’s operating performance saw profitable technical results, which were due to its properly established underwriting principles and revenue from ceding commissions. The credit agency believes that BGR’s technical performance will continue to back its results.
Its business profile was found to be neutral as it can access a wide scope of insured risks.
AM Best expects the reinsurer to continue adjusting its risk appetite and tolerance levels which supports the needs of its parent company when it comes to capital volume and underwriting capabilities.
What are your thoughts on this story? Please feel free to share your comments below.
Keep up with the latest news and events
Join our mailing list, it’s free!
