ECOPETROL S.A.
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb+' (Good) of
The outlook of these Credit Ratings (ratings) is stable.
BGRe is a captive reinsurer of
The ratings of BGRe reflects its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings also recognize the importance of the company within
BGRe's very strong level of balance sheet strength reflects its capital management strategy and ability to build up capital. The company has low net underwriting leverage, creating dependence on reinsurance; however, these associated risks are mitigated partly by a diversified mix of well-rated reinsurers. AM Best expects BGRe to maintain a capital buffer as it continues to adjust its risk appetite to the reinsurance needs of its parent company, as well as the overall reinsurance market conditions.
BGRe's operating performance is characterized by profitable technical results backed by well-established underwriting principles and considerable revenue from ceding commissions. Over the past few years, the company has complemented its net profit with investment results; however, dependence on this revenue is low. AM Best expects the company to continue backing its results with its technical performance.
AM Best views the company's business profile as neutral. BGRe has access to a wide scope of insured risks given the relevance of
The stable outlooks reflect AM Best's expectation that BGRe will continue to adjust its risk appetite and tolerance levels that support its parent company's needs in terms of volume of capital and underwriting capabilities.
Positive rating actions could result if there is a sustained favorable trend in operating performance as the company's strategy continues to adapt to the reinsurance market. Negative rating actions could occur if business flow is limited by any change in its holding company or if the financial situation of the parent company is compromised by any sociopolitical or economic event. Negative rating actions could also take place if the balance sheet strength of the company is further stressed by the materialization of any risk exposure.
AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version
Key insurance criteria reports utilized:
Alternative Risk Transfer (ART) (Version
Evaluating Country Risk (Version
Understanding Global BCAR (Version
Catastrophe Analysis in AM Best Ratings (Version
Available Capital & Insurance Holding Company Analysis (Version
Scoring and Assessing Innovation (
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best's Credit Ratings.
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