AM Best Confirms Lion Reinsurance’s Ratings
AM Best has affirmed Lion Reinsurance Company Limited’s Financial Strength Rating of A [Excellent] with a stable outlook, citing its very strong balance sheet strength and adequate operating performance.
The ratings agency said, “AM Best has affirmed the Financial Strength Rating of A [Excellent] and the Long-Term Issuer Credit Rating of “a” [Excellent] of Lion Reinsurance Company Limited [Lion Re] [Bermuda]. The outlook of these Credit Ratings [ratings] is stable.
“The ratings reflect Lion Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
“The stable outlooks reflect AM Best’s expectation that Lion Re will maintain its overall balance sheet strength assessment of very strong, supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio [BCAR], while ongoing strategic initiatives implemented by management will maintain operating performance supportive of the current ratings over the intermediate term.
“Lion Re is a subsidiary of ASSA Compañía Tenedora, S.A. [ASSA Tenedora] and is owned ultimately by Grupo ASSA, S.A. [Grupo ASSA], a financial services holding company publicly traded on the Panama Stock Exchange.
“Lion Re is a captive Bermuda-based reinsurer assuming risks from ASSA Tenedora affiliates for property, auto, civil liability, marine, group life, health and miscellaneous businesses. AM Best recognizes its strategic role in the group’s overall regional strategy; however, as it is a captive, Lion Re’s business profile is considered limited when compared with other commercial reinsurers.
“Lion Re’s capital base is supportive of its risk-adjusted capitalization, assessed at the strongest level, as measured by BCAR, as well as its balance sheet strength assessment, which is very strong. Lion Re continues to perform an important role in ASSA Tenedora’s strategy as it consolidates operations in the Central American region by providing reinsurance capacity.
“Lion Re’s adequate level of operating performance results from its affiliated insurance companies in the Central American region, as well as its affiliation to Grupo ASSA, which provides synergies, operating efficiencies and financial support. The company reviews its underwriting guidelines constantly to improve the performance of its business segments that are deviating from targets. Investment income, based on a conservative strategy, continues to support Lion Re’s results; however, it is not dependent on this type of revenue to achieve positive bottom-line results. As of December 2024, Lion Re’s consistent profitability was reflected in a return-on-equity ratio above 30%. In 2025, the company remained profitable and in line with previous results.
“Factors that could lead to negative rating actions include a material loss of capital, which reduces the company’s risk-adjusted capitalization to a level that does not support its ratings, or a diminished strategic importance of Lion Re to the group. Factors that could lead to positive rating actions include a greater degree of perceived integration of Lion Re’s role within the group, while maintaining financial support of its parent.”
