ASR Re receives BBB+ financial strength rating from Fitch

Africa Specialty Risks Re (ASR Re) has received an insurer financial strength rating of BBB+ with a positive outlook from Fitch Ratings.

The rating agency said this reflected ASR Re’s moderate business profile and very strong capitalisation and leverage.

Fitch said the business profile was nonetheless “less favourable” than other global reinsurers due to its small scale and limited operational record.

Despite this, ASR Re scored “extremely strong” with regards to its capitalisation and leverage, a factor it noted as a key rating strength.

Overall financial performance is considered strong despite the 11.5 percentage point year-on-year deterioration in ASR Re’s Fitch-calculated combined ratio of 103.4 percent for 2023.

Another positive driver was the Bermuda-based reinsurer’s strong excess-of-loss covers for political violence and terrorism, as well as in property, energy and construction lines.

ASR Re’s positive outlook reflects the business’ improving franchise and business profile, as well as its volumes and earnings growth.

Insurance revenues hit $42mn in 2023, but sharp growth is expected following the setup of its Lloyd’s syndicate and Middle East expansion.