AP NEWS

A.M. Best Affirms Credit Ratings of Terra Brasis Resseguros

September 27, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Sep 27, 2018--A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Terra Brasis Resseguros (Terra Brasis) (Brazil). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect Terra Brasis’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.

The ratings reflect Terra Brasis’ conservative management philosophy and solid risk-adjusted capitalization. Additionally, Terra Brasis has begun to establish a diversified book of business, writing a balanced mix of non-life and life business. Terra Brasis is licensed as a local reinsurance company in Brazil, which provides the company some competitive advantages over its peers designated as admitted or occasional.

In light of Terra Brasis’ somewhat short-lived operating history, underwriting performance has been impacted negatively by its expense ratio. A.M. Best will continue to monitor closely its performance and economies of scale in a competitive but still under-penetrated market. Furthermore, the operating environment in Brazil remains challenging due to continued macroeconomic and political turmoil.

Key factors that could lead to a positive rating action are sustained and improved profitability, increased risk-adjusted capitalization and signs that the company has built a solid market profile.

Conversely, factors that could lead to a negative rating action are a material decline in risk-adjusted capitalization, and the inability of the company to successfully execute its business plans and gain market acceptance.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180927005742/en/

CONTACT: A.M. Best

Guilherme (Guy) Monteiro Simoes

Senior Financial Analyst

+1 908 439 2200, ext. 5301

guy.simoes@ambest.com

or

Scott Mangan

Associate Director

+1 908 439 2200, ext. 5593

scott.mangan@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES BRAZIL EUROPE NORTH AMERICA SOUTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 09/27/2018 01:04 PM/DISC: 09/27/2018 01:04 PM

http://www.businesswire.com/news/home/20180927005742/en

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