AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Denver-headquartered Oceanview Life and Annuity Company and its Bermudian-based reinsurer affiliate, Oceanview Reinsurance Ltd.

The outlook of these credit ratings is stable.

In addition, AM Best has assigned an FSR of A (Excellent) and a long-term ICR of “a” (Excellent) to Oceanview Secure Reinsurance Ltd of the Cayman Islands. The outlook assigned to this rating is stable.

These companies are collectively referred to as Oceanview.

The ratings reflect Oceanview’s 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.

Oceanview’s balance sheet strength continues to be maintained by its very strong level of risk-adjusted capitalisation, as measured by Best’s capital adequacy ratio, which is expected to trend upward to strongest in the near to intermediate term.

The agency said: “Additionally, AM Best notes the support of contributed capital as needed to fund growth and steady surplus growth, which is a result of consistently profitable operations reported over the past few years.

“Oceanview also benefits from the expertise of its investment team and the ability to source mortgage loans that have a good balance between quality, liquidity and yield, resulting in favourable and consistent spreads.”