The Bermuda subsidiary of the giant Panamanian financial services company, Gruppo Assa SA, has just had its excellent long-term issuer credit rating maintained by AM Best.

Lion Reinsurance Company Limited is the Bermuda captive ultimately owned by the publicly traded Grupo ASSA, through its subsidiary ASSA Compañía Tenedora SA.

Lion Re assumes risks from ASSA Tenedora affiliates for property, auto, liability, marine, group life, health and miscellaneous businesses.

AM Best recognises Lion Re’s role in the group’s overall regional strategy; however, as a captive, its business profile is considered limited if compared with commercial reinsurers.

AM Best affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Lion Re. The outlook of the ratings is stable.

They reflect Lion 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.

Grupo Assa SA is a holding company listed on the Panama Stock Exchange under the ticker symbol ASSA. The group has operations across Central America in banking and financing activities, and in insurance and reinsurance.

Lion Re’s adequate level of operating performance results from its affiliated insurance companies in the Central American region, as well as its affiliation to Grupo ASSA, which provides synergies, operating efficiencies and financial support.

The company reviews its underwriting guidelines constantly to improve the performance of its business segments that are deviating from targets.

AM Best said investment income, based on a conservative strategy, continues to support Lion Re’s results; however, it is not dependent on this type of revenue to achieve positive bottom-line results.

As of December 2023, Lion Re’s consistent profitability was reflected in a 37 per cent return-on-equity ratio. In 2024, the company remained profitable and in line with previous results.