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AM Best shifts WAICA Re ratings outlook to stable
AM Best kept WAICA Re’s Financial Strength Rating at B (Fair) but said the stable outlook reflects a narrower capital buffer tied to higher real estate exposure and a new banking subsidiary.
AM Best revised the ratings outlook for WAICA Reinsurance Corporation PLC from positive to stable, while keeping its Financial Strength Rating at B (Fair) and its Long-Term Issuer Credit Rating at “bb+” (Fair), Reinsurance News reported.
The rating agency said the outlook change reflects a reduction in some factors supporting WAICA Re’s balance sheet strength, noting that risk management and operating performance remain part of its assessment.
AM Best cited continued risk-adjusted capitalisation at the strongest level under its Best’s Capital Adequacy Ratio, but added that the capital buffer above the strongest BCAR threshold narrowed materially during 2025.
According to AM Best, the narrowing buffer was primarily linked to WAICA Re’s increased exposure to real estate investments and the establishment of a banking subsidiary, alongside exposure to broader economic, political, and financial system risks.