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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
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  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Revises Outlooks to Positive; Affirms Credit Ratings of Black Gold Re Limited

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Black Gold Re Limited (BGRe) (Bermuda).

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

The outlooks revision to positive from stable reflects AM Best’s expectation that BGRe will continue strengthening its balance sheet through prudent capital management and profitable operating results. The revision is based on the continued strengthening of the company’s balance sheet strength metrics, which are expected to be sustained in the future.

BGRe is a captive reinsurer of Ecopetrol S.A. (Ecopetrol) [NYSE: EC], a Colombia-based integrated energy company that is 88.49% owned by Colombia’s government. The ratings also recognize the importance of the company within Ecopetrol’s strategy.

BGRe’s strongest assessment 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 solid reinsurance program composed of highly 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, as well as the overall reinsurance market conditions.

BGRe’s operating performance is characterized by profitable technical results driven by well-established underwriting principles and considerable revenue from ceding commissions. Over the last few years, the company has complemented its net profit with investment results; however, dependence on this revenue is low.

AM Best views the company’s business profile as neutral. BGRe has access to a wide scope of insured risks given the relevance of Ecopetrol to the oil and gas industry in the Americas. Nonetheless, the company’s underwriting risks are concentrated in Colombia. BGRe’s ERM is well-integrated within Ecopetrol and is important to the group as a cost-effective risk management tool.

Positive rating actions could occur if BGRe is able to further enhance its balance sheet strength, while maintaining the strongest level of risk-adjusted capitalization. Conversely, negative rating actions could take place if BGRe’s business flow is limited by any change in its holding company or if the financial situation of Ecopetrol is compromised by any sociopolitical or economic events. Negative rating actions could also take place if the balance sheet strength of BGRe is stressed by the materialization of any risk exposure.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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