AM Best Confirms High Ratings for New Reinsurer Patria Re (US), Inc
- AM Best has confirmed the ratings of Patria Re (US), Inc. based on various financial strengths.
- Patria Re (US) commenced operations in February 2023 after receiving regulatory approval.
- The company's positive assessment highlights its operational stability supported by a strong parent company.
On November 8, 2024, AM Best affirmed Patria Re (US), Inc.'s Financial Strength Rating of B++ and Long-Term Issuer Credit Rating of 'bbb+'. Patria US, which began operations in February 2023 after receiving authorization from the South Carolina Department of Insurance, has a very strong balance sheet assessed by AM Best. The company's capital base is expected to strengthen, supported by planned contributions from its parent, Reaseguradora Patria, which recently contributed USD 8.5 million in September. Despite Patria US's limited business profile, synergies with its sister company are likely to keep operating expenses stable. AM Best's ratings reflect the strategic importance of Patria US within the Peñá Verde group and the support it receives. However, potential risks include any deterioration in operating performance or reduced support from the group, which could lead to negative rating actions in the future.