AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of Lion Reinsurance Company Limited (Lion Re) (Bermuda). The outlook of these Credit Ratings (ratings) is stable.

Lion Re is a subsidiary of ASSA Compañía Tenedora, S.A. (ASSA Tenedora) and is owned ultimately by Grupo ASSA, S.A. (Grupo ASSA), a financial services holding company publicly traded on the Panama Stock Exchange.

The ratings reflect Lion Re´s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Lion Re is a Bermuda-based reinsurer assuming risks from ASSA Tenedora affiliates for property, auto, liability, marine, group life (short term), health and miscellaneous businesses. AM Best recognizes the strategic role that Lion Re aims to achieve in the group’s overall regional strategy; however, Lion Re’s business profile is considered limited given its accessibility to markets when compared with other commercial reinsurers.

Lion Re´s capital base is supportive of risk-adjusted capitalization being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Lion Re continues to perform an important role in ASSA Tenedora’s strategy as it consolidates operations in the Central America region by providing reinsurance capacity.

Lion Re’s adequate level of operating performance results from its affiliated insurance companies in the Central America region, as well as its affiliation to Grupo ASSA, which provides synergies, operating efficiencies and guarantee support. The company reviews its underwriting guidelines consistently to improve the performance of its business segments that are deviating from targets. Investment income, based on a conservative strategy, continues to support Lion Re’s results; however, the company is not dependent on this revenue to achieve positive bottom-line results. In 2023, the company’s consistent profitability was reflected in a 36% return-on-equity ratio.

Factors that could lead to positive rating actions include a greater degree of perceived integration of Lion Re’s role within the group while maintaining its guaranteed support of its parent. Factors that could lead to negative rating actions include a material loss of capital that reduces risk-adjusted capitalization to a level that does not support the ratings, or if the strategic importance of Lion Re to the group diminishes.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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Salvador Smith Senior Financial Analyst +52 55 9085 7506 salvador.smith@ambest.com Eli Sanchez Director, Analytics +52 55 9085 7503 eli.sanchez@ambest.com Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com Al Slavin Senior Public Relations Specialist +1 908 882 2318 al.slavin@ambest.com