A.M. Best Assigns Ratings to Ocean International Reinsurance Company Limited

A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of "a-" to Ocean International Reinsurance Company Limited (Ocean Re) (Barbados). The outlook assigned to both ratings is stable.

The ratings for Ocean Re are based on its solid risk-adjusted capital position, favorable operating performance and liquidity measures as well as its low operating cost structure. The ratings also consider the company's experienced management team, which is familiar with the risks and the region Ocean Re operates in.

These strengths are partially offset by Ocean Re's limited market position and financial flexibility as a result of its private ownership structure. The outlook is based on A.M. Best's expectation that the company will maintain its strong capitalization and operating performance.

Ocean Re focuses on reinsurance and offers a diversified product mix in several countries throughout Latin America. The company also offers facultative programs that are fully funded to the expected ultimate losses by the company's clients.

Ocean Re's management is committed to growth in capital, a well-diversified investment portfolio and a focus on its long-term stability. A.M. Best anticipates that Ocean Re will continue to report profitable underwriting results and will maintain solid capitalization levels.

Although the outlook for Ocean Re's ratings is stable and the ratings are not expected to be upgraded nor its outlook revised within the next 12-24 months (since its performance and capital position have already been considered in the ratings), A.M. Best could downgrade the ratings and/or revise the outlook if the company's Best Capital Adequacy Ratio (BCAR) declines, its operating performance and risk profile deteriorate, or losses from claims or investments erode capital.

A.M. Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. 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.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best Company
Janet Hernandez, 908-439-2200, ext. 5767
Senior Financial Analyst
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or
Steven Chirico, CPA, 908-439-2200, ext. 5087
Assistant Vice President
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or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
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or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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