AM Best Affirms Credit Ratings of Barents Re Reinsurance Company, Inc. and Its Affiliate

JANUARY 16, 2026 12:29 PM (EST)

AM Best Affirms Credit Ratings of Barents Re Reinsurance Company, Inc. and Its Affiliate

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FOR IMMEDIATE RELEASE

MEXICO CITY - JANUARY 16, 2026 12:29 PM (EST)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of "a" (Excellent) of Barents Re Reinsurance Company, Inc. (Barents Re) (Cayman Islands) and its affiliate, Barents Reinsurance S.A. (Barents Re Lux) (Luxembourg). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Barents Re's balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The rating affirmations reflect Barents Re's risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), the improvement in the company's corporate governance framework and consistent profitability. AM Best expects the execution risk generated by the constantly shifting regional composition of Barents Re's business portfolio to remain contained.

The ratings of Barents Re Lux reflect the company's strategic importance to and the support it receives from Barents Re. Barents Re Lux is part of the Barents Re rating unit, and is fundamental to the group's overall strategy. Barents Re also provides parental guarantee and reinsurance support to Barents Re Lux. Barents Re's business portfolio contracted year-over-year in 2024, mainly driven by cargo run-off and specialty lines cancellation coverages in Europe; however, energy, property and life still drove business growth. The Middle East and North Africa-sourced business represents 43% of Barents Re's portfolio, with the Latin America region generating 24%, followed by Europe with 17% and Asia at 16%, as of year-end 2024. The company is supported by its diversified and comprehensive reinsurance programs, which are placed among reinsurers with a good level of security, a key characteristic that Barents Re has adopted to enter new business lines and regions prudently.

Although Barents Re's operating performance has shifted over time toward a different structure, its current metrics still compare favorably with the market. As of June 2025, the company presented a positive bottom-line result of USD 17.76 million, showing resilience in current market conditions. Although there is volatility present in the company's premium volume and the composition of its business portfolio, Barents Re has consistently produced positive operating earnings across multiple underwriting cycles.

Barents Re's risk-adjusted capitalization was further reinforced in 2024, and was underpinned mainly by its positive bottom-line results in the last years. The company's reinsurance program adequately covers exposures, and its net exposures to catastrophe events do not represent a significant portion of its reported surplus.

Negative rating actions could occur as a result of a breakdown in Barent Re's corporate governance due to regulatory issues or a breach in controlling its operational risks. Factors that also could lead to negative rating actions are the deterioration in Barents Re's expected performance in terms of profitability and capital generation as a result of its constantly shifting business mix. Although unlikely, positive rating actions could result from a successful consolidation of Barents Re's business strategy in targeted locations.

The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Aug. 29, 2024), which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

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• Available Capital and Insurance Holding Company Analysis (Version Sept. 18, 2025)
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• Catastrophe Analysis in AM Best Ratings (Version Feb. 08, 2024)
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• Evaluating Country Risk (Version June 6, 2024)
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• Scoring and Assessing Innovation (Version Feb. 20, 2025)
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• Understanding Global BCAR (Version Sept. 18, 2025)
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View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best's Credit Ratings.

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• Previous Rating Date: Dec. 11, 2024
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• Initial Rating Date: Sept. 5, 2010
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• Date Range of Financial Data Used: Dec. 31, 2020-June 30, 2025
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Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to rating(s) that have been published on AM Best's website. For additional 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 Activityweb page.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company's financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

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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.