AM Best Affirms Credit Ratings of Global Protection Reinsurance Ltd.

AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Global Protection Reinsurance Ltd. (GPR) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GPR’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The stable outlooks are based on AM Best’s expectation that GPR will continue to develop its strategy in a profitable way, while maintaining its current level of risk-adjusted capitalization, assessed as strongest as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its prudent capital and liquidity management practices.

The company is based in Barbados and fully owned by Global Protection Holding Corp. (B.V.I.), a subsidiary of Ficohsa Corp S.L. (Spain), previously named Corporacion Ficohsa S.A.(Panama). In 2023, it was renamed, and the domicile was changed to Spain. GPR concentrates its efforts in reinsuring the group’s facultative risks, limiting its growth inside the markets where the group operates, such as El Salvador, Guatemala, Honduras, Nicaragua and Panama.

GPR has strengthened its capital base steadily by reinvesting its earnings. The balance sheet strength assessment of strongest also factors in the company’s ability to generate profit, taking advantage of the synergies within the group, as well as their capital management efficiency reflected by low financial and operating leverage, and strong liquidity position.

The company historically has shown positive bottom-line results. GPR’s operating performance has been underpinned by positive technical results as it pursues new business opportunities inside its group. The nature of the business and its technical capacities in new business lines will continue to be monitored closely to assess the overall operating performance. AM Best expects GPR to maintain premium sufficiency and steady trends in its profitability ratios.

AM Best assesses GPR’s business profile as limited due to its self-imposed geographic boundary reach to that of its economic group. However, given the depth of the operations of its economic group, overtime, greater diversification could be achieved. Despite the regional diversification, as of 2024, GPR’s portfolio remains highly concentrated in Honduras, which accounts for 74.4% of the total premiums, followed by Nicaragua (22.6%), Panama (1.8%), Guatemala (0.6%), and El Salvador (0.6%).

AM Best considers GPR’s ERM to be appropriate as it is well-integrated into its operations. The company follows the group’s risk policies and appetite and adheres to the investment policies of its affiliates, which were previously approved by management. Underwriting is guided by bottom-line approach that prioritizes technical profitability and disciplined risk selection over premium growth. This prudent strategy reflects a conservative risk appetite focused on solvency and capital preservation.

Positive rating actions could take place if the operating performance of GPR keeps trending positively with a higher diversification in revenues and profits. Factors that might lead to negative rating actions include any major changes in GPR’s capital base, such as significant dividends or capital outflows, which diminish AM Best’s view of the company’s balance sheet strength. Negative rating actions could also occur if disruptions in business generation from the group affect GPR's operating performance.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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