AM Best Affirms Credit Ratings of Reunion Re Compañia de Reaseguros S.A.
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Reunion Re Compañia de Reaseguros S.A. (Reunion Re) (Argentina). The outlook of these Credit Ratings (ratings) is negative.
The ratings reflect Reunion Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The negative outlooks reflect the pressure applied to Reunion Re’s balance sheet strength caused by the influence of the rating unit’s holding company coupled with the macroeconomic challenges in Argentina. As of March 2026, Reunion Re’s ultimate parent continues to experience pressure on its balance sheet strength mainly due to the negative impact stemming from the country’s currency devaluation resulting in a weak balance sheet strength assessment.
Reunion Re’s balance sheet strength remains underpinned by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also reflect the company’s consistent profitability in its technical results despite a volatile economic environment. Other positive rating factors include the company’s well-structured and diversified reinsurance program, its seasoned management team and synergies provided by its main shareholder. Partially offsetting these positive rating factors is the historical volatility in Reunion Re’s bottom-line results due to operating in Argentina’s challenging macroeconomic environment and fluctuations in its retrocession leverage stemming from reinsurance recoverables and ceded premium. Reunion Re initiated operations in Buenos Aires, Argentina in 2012. The company operates through a network of brokers and direct distribution channels mainly in Argentina but also has a presence in South and Central America.
