AM Best Removes From Under Review With Developing Implications and Upgrades Credit Ratings of Genesis Global Insurance (SAC) Ltd.

BY Business Wire | CORPORATE | 03/08/23 11:12 AM EST

MEXICO CITY--(BUSINESS WIRE)-- AM Best has removed from under review with developing implications and upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to ?a-? (Excellent) from ?bbb+? (Good) of Genesis Global Insurance (SAC) Ltd. (Genesis) (Nassau, Bahamas). The outlook assigned to these Credit Rating (ratings) is stable.

The ratings reflect Genesis? strategic importance as a subsidiary of La Colonial, S.A. - Compa??a de Seguros (La Colonial) that on a consolidated basis has a balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The rating upgrades reflect the company?s affiliation with its ultimate parent company, La Colonial, which is one of the leading insurers in the Dominican Republic, supported by a strong parental guarantee, in place since September 2022. Genesis also is integrated in all core processes and ongoing strategic initiatives of the group. Offsetting these positive factors is the inherent risk of a startup company implementing its business plan, as well as distribution channel and product concentration.

Genesis is a startup reinsurance company 100% owned by Altos International LLC, which in turn is owned fully by La Colonial. Genesis? main business purpose is to retain risk exposures that currently are transferred to the market or retained by La Colonial. Genesis? capacity is handled through La Colonial?s reinsurance broker, Wahr Re.

Genesis offers general insurance, including the following risks: motor vehicle, property and liability. Due to the nature of the new company?s strategy, there is concentration in a single distribution channel, and exposure to catastrophe insurance.

Genesis is considered part of La Colonial?s group rating unit due to the expectation that La Colonial will support Genesis to the full extent of its financial strength. This is reflected by the strong parental guarantee and explicit capital support, as well as Genesis? strategic importance to the group as a vehicle to diversify operations outside the Dominican Republic.

Positive rating actions are not expected in the medium term. If there are negative rating actions taken on La Colonial, as a result of erosion of the capital base, either due to negative operating performance or changes in the macroeconomic environment that adversely impact the company?s operations, or any major changes in La Colonial?s capital base, including significant dividends or capital outflows, that diminish AM Best?s view of the company?s balance sheet strength, it would result in negative rating actions taken on Genesis.

A change in AM Best?s perception regarding the strategic importance of Genesis to the group also could impact Genesis? ratings.

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

Copyright ? 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

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