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

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

Sura Re is a captive reinsurer based in Bermuda fully owned by Suramericana S.A. (Suramericana) (Colombia), an insurance group that is 81.1% owned by Grupo de Inversiones Suramericana S.A. (Grupo Sura). Sura Re was established in Bermuda as a Class 3A insurer in December 2015, and in April 2022, received approval from the regulator to operate as a Class C insurer. Sura Re’s main objective is to participate in property/casualty and life/health businesses, which are underwritten by Suramericana’s affiliates across Latin America (i.e., Chile, Colombia, México, Panama and Dominican Republic) to help the group achieve its strategic regional goals. AM Best recognizes the greater relevance that Sura Re is aiming to achieve in Suramericana’s overall regional strategy, which is reflected with Suramericana’s expanded geographic scope.

AM Best assesses Sura Re’s balance sheet strength as very strong, given its strongest risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), with a score of 32% at the 99.6% interval. At year-end 2024, capital and surplus presented a growth of +11.3% reaching USD 19.1 million fully supported by reinvestment of Sura Re’s earnings. During 2024, capital requirements continued to reflect higher premium risk as the company executed its strategy and increased retention. The company’s asset liability management and liquidity positions are adequate; both are supported by a conservative investment policy focused on maintaining liquidity to cover Sura Re’s obligations in terms of tenure and currency. To date, the company has not taken on any credit obligations, which reduces pressure on its earnings and cash flow.

In December 2024, Sura Re reported positive net results for the sixth consecutive year since its inception, with a net result of USD 1.9 million. Operating performance was characterized by profitable technical results, as Sura Re’s good underwriting practices and continuous fee income persisted, allowing it to regain premium sufficiency levels. Profitability was driven by underwriting and strengthened by investment results. AM Best remains attentive to macroeconomic conditions and its impact on the company’s investment results. The captive nature of Sura Re, within one of the largest insurance groups in Latin America, provides flexibility in terms of growth and premium risk to efficiently manage its capital. AM Best assesses operating performance to be adequate for the current ratings.

AM Best assesses Sura Re’s ERM practices as appropriate, as the ERM framework is developed and the risk management capabilities are aligned with the risk profile. Additionally, Sura Re's risk culture is deeply rooted and aligned with Suramericana’s enhancing management practices.

The stable outlooks reflect AM Best's expectation that the company will be able to maintain its risk-adjusted capitalization at the strongest level, as measured by its BCAR, through organic capital growth, supported by profitable results.

Negative rating actions could take place if Sura Re’s risk-adjusted capitalization deteriorated to a point no longer supportive of its current ratings, driven either by losses or cash outflows that significantly eroded the company’s capital base. No positive rating actions are foreseen in the short term; however, this could occur if the company continues to grow its capital base while maintaining the strongest level of risk-adjusted capitalization.

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.

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