AM Best Revises Issuer Credit Rating Outlook to Positive, Affirms Credit Ratings of Sura Re Ltd.

For best results when printing this announcement, please click on link below: AM Best Revises Issuer Credit Rating Outlook to Positive, Affirms Credit Ratings of Sura Re Ltd. AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Sura Re Ltd. (Sura Re) (Bermuda). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Sura 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 (ERM). The revision of the Long-Term ICR outlook to positive from stable reflects the company’s continued organic capital growth, supported by prudent capital management and consistent earnings generation. These factors have enabled the company to increase its capital base to more than USD 20 million while maintaining its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

Additionally, a recent capital contribution from shareholders further strengthens the company’s capital position and supports the implementation of the captive’s business strategy. AM Best expects the company to continue strengthening its capital base while prudently executing its growth strategy and maintaining capital levels commensurate with its evolving risk profile. Sura Re is a Bermuda-based captive reinsurer fully owned by Suramericana S.A. (Suramericana) (Colombia), an insurance group that is 81.1% owned by Grupo de Inversiones Suramericana S.A.

(Grupo Sura). Sura Re was established in Bermuda as a Class 3A insurer in December 2015, and in April 2022, received approval from the regulator to operate as a Class C insurer. Sura Re’s main objective is to participate in property/casualty and life/health businesses, which are underwritten by Suramericana’s affiliates across Latin America (i.e., Chile, Colombia, México, Panama and Dominican Republic), and help the group achieve its strategic regional goals. AM Best recognizes the greater relevance that Sura Re is aiming to achieve in Suramericana’s overall regional strategy, which is reflected with Suramericana’s expanded geographic scope.

AM Best assesses Sura Re’s balance sheet strength as very strong, underpinned by its strongest level of risk-adjusted capitalization, as measured by BCAR. During 2025, pricing risk remained the primary driver of Sura Re’s capital requirements, a trend that AM Best expects to continue as the company takes on a more prominent role within the group. The company’s asset liability management and liquidity positions are adequate; both are supported by a conservative investment policy focused on maintaining liquidity to cover Sura Re’s obligations in terms of tenure and currency.

To date, the company has not taken on any credit obligations, which reduces pressure on its earnings and cash flow. The absence of dividend distributions also supports capital retention. In 2025, Sura Re reported positive net results for the seventh consecutive year since its inception, with a net result of USD 1.6 million. Operating performance was characterized by profitable technical results, with a combined ratio below 100%, although it increased compared with the previous year due to a higher loss ratio, partially offset by an improvement in the operating expense ratio (net/net).

Profitability was driven by underwriting and strengthened by investment results. AM Best remains attentive to macroeconomic conditions and its impact on the company’s investment results. The captive nature of Sura Re, within one of the largest insurance groups in Latin America, provides flexibility in terms of growth and premium risk to manage its capital efficiently. AM Best assesses operating performance to be adequate for the current ratings.

AM Best assesses Sura Re’s ERM practices as appropriate, as the ERM framework is developed and the risk management capabilities are aligned with its risk profile. Additionally, Sura Re's risk culture is deeply rooted and aligned with Suramericana’s enhanced management practices. Positive rating actions may occur if the improvement in the company’s fundamentals prove sustainable, while capital continues to grow commensurately with its evolving risk profile. Negative rating actions could occur due to a sustained adverse trend in operating results.

Negative rating actions could also take place if the company’s capital base deteriorates or fails to keep pace with its evolving risk profile as result of business underperformance, significant capital outflows or less prudent capital management. 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 AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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