AM Best has upheld ratings for Global Protection Reinsurance Ltd. and ZEP-RE, presenting two contrasting paths to stable outlooks, one built on a concentrated Central American portfolio and the other on diversified reinsurance operations across Africa.
GPR kept its Financial Strength Rating of B++ and Long-Term Issuer Credit Rating of “bbb.” The ratings carry a stable outlook. AM Best assessed the company’s balance sheet strength as strongest, supported by risk-adjusted capitalization measured at the strongest level under Best’s Capital Adequacy Ratio. GPR reinsures facultative risks within its economic group and limits activity to markets where the group operates, including El Salvador, Guatemala, Honduras, Nicaragua and Panama.
Honduras accounted for 74.4% of GPR’s total premiums in 2024, followed by Nicaragua at 22.6%, Panama at 1.8%, and 0.6% each for Guatemala and El Salvador. The company continues to reinvest earnings to build its capital base and maintains low financial and operating leverage. AM Best cited positive technical results in recent years, with operating performance supported by premium sufficiency and internal business opportunities. The group’s risk policies and investment guidelines guide underwriting and asset allocation, which follow a bottom-line approach focused on technical profitability.
AM Best stated that increased diversification in revenue and profit could lead to positive rating actions for GPR. Lower ratings could occur if material changes in capital, such as significant outflows, reduce the balance sheet strength assessment or if business generation from the group declines.
ZEP-RE retained its B++ Financial Strength Rating and “bbb+” Long-Term Issuer Credit Rating, also with a stable outlook. AM Best assessed the reinsurer’s balance sheet strength as very strong. Risk-adjusted capitalization remains comfortably at the strongest BCAR level, supported by prudent asset allocation and low underwriting leverage. The company operates in Eastern, Southern and West African markets and writes composite reinsurance across multiple countries. Exposure to economic and political risks in several territories is offset partly by geographic diversification.
ZEP-RE reported a return-on-equity range of 4% to 10% during 2020 to 2024. AM Best noted that these figures relate to the company’s capital position and the use of USD as the reporting currency. A three-year weighted average net/net combined ratio of 86.6% under IFRS 17 contributed to profitability trends. ZEP-RE’s position in several African markets is supported by compulsory cessions in a number of COMESA and CIMA jurisdictions.
AM Best kept the stable outlooks for both companies after reviewing capital positions, performance indicators and established risk management practices.
