AM Best affirms Waica Re's rating

AM Best has confirmed Waica Re's financial strength rating of "B" (fair) and its long-term credit rating of "bb+". The outlook for the former is stable, while it is negative for the latter.

The Sierra Leone reinsurer's ratings are no longer "under review with negative implications". The negative outlook on the long-term credit rating reflects the pressure exerted on the company as a result of its high exposure to investment risks in Ghana.

The rating agency praised Waica Re's strong operating performance, which was evidenced by a five-year average combined ratio (2018-2022) of 87.9% and a return on equity (ROE) of 15.3%.