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MEXICO CITY–(BUSINESS WIRE)–optimal has changed the outlook to positive from stable and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (ICR) of ‘bbb+’ (Good) for Reaseguradora Delta, SA (Delta Panamá) (Panama and Reaseguradora Delta, CA (Delta Panamá) (Caracas, Venezuela).
Panama’s Delta Air Lines ratings reflect its balance sheet strength (assessed as very strong by AM Best), good operating performance, neutral business profile and appropriate comprehensive risk management (ERM).
Panama’s positive outlook demonstrates the company’s ability to maintain favorable underwriting metrics and earnings performance over the medium to long term while executing its growth strategy.
The strong assessment of Delta Panama’s balance sheet strength recognizes the appropriate fit between the company’s obligations and risk appetite, as well as its shareholders’ commitment to strengthening its capital base, as reflected in its highest level of risk-adjusted capital, as measured by the Best’s Capital Adequacy Ratio (BCAR), and favorable net premium leverage metrics.
The company’s operating performance is characterized by profitability; all business lines achieved positive net income in 2023. Although investment income contributes to Delta Copa’s bottom line, profitability is achieved entirely through technological achievements. AM Best expects Delta Copa to maintain premium-adequate levels while implementing its growth strategy.
Delta Panama was established in Panama in 2010 and provides treaty reinsurance and facultative reinsurance for a variety of business lines, including fire, surety, construction and engineering, automobile, aviation and marine risks, civil liability, theft and personal accident. The majority of its portfolio consists of treaty reinsurance (93%), while facultative reinsurance accounts for 7%. Delta Panama is geographically diversified, with the company writing premiums in Ecuador, Panama, the Dominican Republic and Paraguay, and is entering new territories such as Mexico, Guatemala and Honduras. The company’s distribution channels include brokers and alliances with other reinsurers, as well as a general management organization (MGA) established by Delta Panama’s shareholders in Miami. AM Best assesses the company’s business profile as neutral.
Comprehensive risk management is considered appropriate because it is well integrated into your operations; the company has a clear risk appetite and tolerance and leverages its pricing model and management team with more than 20 years of experience in the Latin American market. The company has a solid excess of loss retrocession program and works with highly rated reinsurers whose insurance levels are excellent. Safety.
Delta Venezuela is a reinsurance company founded in 1963 in Caracas, Venezuela. The company shares senior management and major shareholders with Delta Panama since 2010; provides treaty and facultative reinsurance for various business lines, including fire, surety, construction and engineering, automobile, aviation and marine risks, civil liability, theft and personal accident. The company sells premiums in Venezuela and Ecuador through shared distribution channels.
Delta Venezuela’s risk-adjusted capital is at its strongest level as measured by BCAR, and the company is protected from Venezuela’s economic volatility through its conservative investment strategy. The company’s operating performance is characterized by profitability; technical profitability in all business lines achieved a positive net result in 2023. Delta Venezuela receives significant reinsurance support from Delta Panama in terms of underwriting, reinsurance protection and comprehensive risk management through a 90-10% consolidated quota segment.
Positive rating action could occur if Panama Airlines can demonstrate sustained profitable operating performance comparable to the strong assessment level. Negative rating action could occur if the company’s capital base erodes due to cash withdrawals or deteriorating operating performance, thereby weakening risk-adjusted capital to an extent that no longer supports the current assessment.
This press release refers to the ratings published on the AM Best website. For all other rating information related to the relevant publication and disclosure, including details of the office responsible for issuing each individual rating mentioned in this press release, please consult the website: Press release Author: AM Best. For more information on the use and limitations of credit rating opinions, see Best Credit Score GuideFor more information on the proper use of your best credit score, Credit Review For Best Performance, Best Initial Credit Assessments and AM Best news releases, please visit Guidelines for the appropriate use of best ratings and reviews.
AM Best is a global credit rating agency, news and data provider specializing in the insurance industry. Headquartered in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, www.ambest.com.
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Contact Details
Inger Rodriguez
Financial Analyst
+52 55 9085 6353
(email protected)
Alfonso Novello
Director of Advanced Analytics
+52 55 9085 658
(email protected)
Christopher Sharkey
Deputy Director of Public Relations
+1 908 882 2310
(email protected)
Al Slavin
Senior Public Relations Strategist
+1 908 882 2318
(email protected)
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