NPRE explodes its results, snubs AM Best and bets on Africa

The reinsurer blows up its figures and snubs poorly calibrated agencies

A dramatic turn of events in the hushed world of reinsurance: Newpoint Reinsurance Company Limited (NPRE) has just seen its rating withdrawn by AM Best. A disavowal? Not really. More of a methodological divergence that's pushing NPRE to turn to agencies better suited to its financial structure. Meanwhile, the numbers are soaring, and the company is posting insolent growth in 2024. A solidity that also allows it to see bigger, with a massive investment of 50 million dollars in Africa via the acquisition of Kessner Capital Management .

AM Best drops NPRE, but the machine is running at full speed

AM Best, the leading insurer rating agency, has decided to no longer assign a rating to NPRE. Officially, AM Best's methodology would not allow for a proper assessment of NPRE's parent company, NFG SA . In other words, it is a technical incapacity rather than a sign of financial weakness. Before this withdrawal, NPRE had a B+/BBB- rating, a respectable rating that underlined its solidity.

But here's the thing: rather than fighting against an ill-adjusted system, NPRE is taking the lead and negotiating with rating agencies more aligned with its financial reality . A strategic change that could well benefit it.

Growth that would make the competition pale

While some saw this as a threat, NPRE's 2024 results have silenced the skeptics. The reinsurer is posting booming figures:

• Insurance revenue : $330.8 million (+53% in one year).
• Total assets : $689.4 million (+24%).
• Cash and investments : $317 million (+174%).

Suffice it to say that the company's financial health is far from shaky. These performances position NPRE as a major player in the sector, with strengthened solvency and intact ambition .

A rating agency? Yes, but a well-chosen one

Behind this forced change, NPRE sees an opportunity : to affiliate with an agency capable of understanding its unique structure and strategic choices. Management fully embraces this transition, emphasizing that transparency and financial stability remain at the heart of the company's policy .

"We would have preferred things to happen differently, but this decision by AM Best doesn't change our reality: NPRE has never been stronger. Our cash reserves are exploding, our balance sheet is rock-solid, and our revenue is soaring. We will quickly rely on agencies that are better equipped to evaluate us."
– Keith D. Beekmeyer, CEO of NFG SA

The future looks robust for NPRE

NPRE has no plans to slow down. In the midst of international expansion, the company continues to innovate and consolidate its position in the reinsurance market. Its war chest and sustained growth give it ample room to attract rating agencies that are more consistent with its model .

The coming weeks should bring some new information regarding the selection of these new partners. In the meantime, NPRE continues its ascent, unaffected by the turbulence.