AM Best has confirmed WAICA Re’s “B+” (good) financial strength and “bbb-” long-term credit rating. According to the rating agency, the Sierra Leonean reinsurer’s operating performance is solid.
The average combined ratio over the 2017- 2021 period stands at 88.4 per cent and the return on equity (ROE) at 12.4 per cent. In 2021, the company has recorded a turnover of $153.3 million, up by 49 per cent compared to 2020. Despite this strong performance, AM Best has downgraded the outlook on both ratings from stable to negative.
This decision reflects the pressure exerted on WAICA Re’s balance sheet following the deterioration of its risk-adjusted capitalisation.