AM Best Assigns Credit Ratings to Redbridge Insurance Company Limited

MEXICO CITY–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of B++ (Good)
and a Long-Term Issuer Credit Rating of “bbb” to Redbridge Insurance
Company Limited (RICL) (St. James, Barbados). The outlook assigned to
these Credit Ratings (ratings) is stable.

The ratings reflect RICL’s balance sheet strength, which AM Best
categorizes as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise risk
management.

The ratings also reflect the company’s strong risk-adjusted capital and
sound business strategy, as well as its experienced management team.
Partially offsetting these positive rating factors is the small size of
the company, and the competitive environment in which it operates, which
could pressure future growth and underwriting performance.

RICL is an insurance and reinsurance company founded in December 2010,
and part of Redbridge Holding, Inc., a company specialized in the
management of insurance and reinsurance. Most members of the management
team have worked together for many years in developing and expanding
RICL, which has achieved significant growth in recent years.

RICL’s main line of business is health insurance, with a complete
network of operations that has enabled growth in the Latin American and
Caribbean markets. As of December 2018, RICL’s portfolio was comprised
83% by health, and 17% by life; it is diversified geographically among
23 countries in the Caribbean and Latin America, with a larger
concentration in Mexico (23.9%).

The continuing improvement in RICL’s risk-adjusted capitalization is
mainly a result of two USD 1 million capital contributions during 2019.
In addition, the company’s balance sheet strength is reinforced by its
reinsurance program placed with reinsurers with an excellent level of
security, nevertheless the concentration in one particular reinsurer
limits AM Best’s view on balance sheet strength. Additional capital
contributions will be key for the future balance sheet strength
assessment.

RICL’s overall underwriting results have improved from the past years,
and combined ratios have remained below the 100% threshold. In addition,
the RICL’s prudent underwriting practices have maintained the loss ratio
at stable levels. As of December 2018, RICL has gradually increased its
retention, but continued underwriting a healthy business volume with
respect to its growing capital base, which helped reduce the company’s
premium leverage ratios.

Positive rating actions could occur if the company’s risk-adjusted
capital further strengthens as a result of capital contributions, or
from significant improvement in its bottom-line results. Negative rating
actions could occur if premium growth or deteriorating underwriting
results erode the company’s capital base and reduce risk-adjusted
capitalization to a level that no longer supports the 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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.

AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Olga Rubo
Financial Analyst
+52 55 1102 2720,
ext. 134
olga.rubo@ambest.com

Alfonso Novelo
Senior Director, Analytics
+52
55 1102 2720, ext. 107
alfonso.novelo@ambest.com

Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
james.peavy@ambest.com