AM Best Affirms Credit Ratings of Redbridge Insurance Company Limited

MEXICO CITY–(BUSINESS WIRE)–AM Best has confirmed the Financial Strength Test of B++ (Good) and Long Term Creditor of “bbb” (Good) for Redbridge Insurance Company Limited (RICL) (St. James, Barbados). The loan format (parts) is fixed.

These ratings reflect RICL’s strengths, which AM Best considers to be very strong, as well as its operational efficiency, limited business history and sound business management.

The ratings also reflect the company’s strong capital adequacy ratio by the end of 2021, as measured by Best’s Capital Adequacy Ratio (BCAR), a strategic business model by its experienced team. The best solution to this is the size of the company and the difficult environment in which it operates, which will force future growth and better writing.

RICL is an insurance and reinsurance company established in December 2010, and is part of Redbridge Holding, LLC (Redbridge Holding), an insurance and reinsurance management company. Many members of the management team have worked together for many years in the creation and development of RICL; therefore, the company has achieved significant growth in recent years. In 2020, several companies that were previously under Redbridge Holding were merged into RICL. These companies offer their services to RICL, further strengthening the management’s commitment to the development of RICL.

RICL’s core business is health insurance, with many services that have helped it grow in the Latin American and Caribbean markets. As of December 2021, health insurance accounted for 92% of RICL, with life insurance accounting for the remaining 8%. The company is diversified among 30 countries in the Caribbean and Latin America, where it is the largest in Venezuela (21%).

Two major donations of USD 1 million in 2019 made RICL even better. From 2020 onwards, risk-adjusted income reflects the incorporation of new entities into the organization. Overall, the balance sheet looks strong after the merger, but it still has some volatility that comes from the distribution and growth of the company’s business.

RICL’s loss ratio decreased in 2021 compared to the previous year’s results; however, after the inclusion of new entities in the organization in 2020, the company’s financial plan has changed, and this benefited even the increase in claims. The company has increased reserves slowly, but it has maintained its good record in terms of capital growth, and is expected to maintain additional metrics in the near future.

Good measurement practices can result from continuous performance improvement as the company successfully expands its business. Unfair actions may occur if premium growth or deterioration in underwriting results destroys the company’s financial performance and reduces risk-adjusted returns to a level that is no longer consistent with ratings. Adverse actions may also occur due to damage to RICL’s company reputation.

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