Oceanview Re and parent earn positive outlook rating
AM Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit ratings of “a-” (Excellent) of Denver-headquartered Oceanview Life and Annuity Company and its reinsurer affiliate, Bermuda-based Oceanview Reinsurance Ltd.
The agency said that the ratings of Oceanview Life and Oceanview Re reflect their balance sheet strength, which AM Best assesses as very strong, as well as their adequate operating performance, neutral business profile and appropriate enterprise risk management.
Oceanview Life’s positive outlooks reflect AM Best’s expectation that the company’s risk-adjusted capitalisation will remain at the strongest level, as measured by Best’s capital adequacy ratio.
The agency said that Oceanview Life benefits from a strong parent, Oceanview Holdings Ltd, which has been able to provide capital as necessary through Oceanview Life’s initial years of operation.
Continued execution of Oceanview Life’s business plan is further supported by the very strong level of risk-adjusted capitalisation at Oceanview Re and the capacity to reduce new business strain at Oceanview Life, if needed.
The agency said that Oceanview Life and Oceanview Re benefit from the expertise of their investment team and the ability to source mortgage loans that have a good balance between quality, liquidity and yield, resulting in good spreads in a challenging investment environment.
AM Best said that it will continue to monitor the operating performance of Oceanview Life, including good top-line growth and expectations of statutory profitability that will improve the overall balance sheet strength of the rating unit going forward.