Credit rating agency AM Best has revised Atlantic Re’s long-term issuer credit rating (Long-term ICR) outlook to positive from stable.
Meanwhile, AM Best affirmed the Morocco-based reinsurer’s Financial Strength Rating (FSR) of B++ (good) and long-term ICR of ‘bbb’. The outlook for FSR is stable.
AM Best noted that the revision reflects improvements in the company’s risk-adjusted capitalization and strong operating performance record.
Atlantic Re will officially transition to the new brand in 2025.
The company, historically known as Société Centrale de Réassurance (SCR), underwent an extensive rebranding in early 2026 to better reflect its expanding international operations and its “Reach 2030” strategic plan.
Since its establishment in 1960, the company has served as Morocco’s national reinsurer for more than sixty years, playing a central role in shaping the country’s insurance industry, underwriting major risks and supporting the national economy during critical times.
AM Best said the shift to a positive outlook was primarily due to an improvement in its capital position, as capital adequacy has reached its “strongest” level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by higher unrealized investment income.
AM Best explains: “The balance sheet strength assessment factor affects Atlantic Re’s high-yield distribution, in the form of dividends to its main shareholder Caisse de Dépôt et de Gestion (CDG), the state-owned investment vehicle of the Kingdom of Morocco, and as remuneration for an explicit guarantee provided by the Moroccan state, which limits capital generation to a certain extent.”
Adding: “Another factor that partially offsets the strength of the balance sheet is that the company’s assets are primarily concentrated in Morocco, where the company holds over 95% of its investments.”
Atlantic Re also demonstrated a strong five-year (2020-2024) weighted average return on equity (ROE) of 14.3% and a non-life combined ratio of 85.2%.
The company’s performance was underpinned by the good profitability of its domestic Moroccan portfolio, good reserve development from its legacy forced transfer business, and solid investment returns with a five-year weighted average investment return (including gains) of 5.9%.
AM Best expects Atlantic Re’s operating results to remain strong despite facing potential volatility due to its peak risk exposure.
The company is currently targeting high-growth African markets through its network of regional offices in Abidjan, Kigali, Cairo and Johannesburg, with the aim of increasing international turnover by up to 30% by 2030.
