Barbados reinsurer Ocean Re mulls expansion in London, LatAm as it merges with Energy Risk Re

Barbados reinsurers Ocean International Reinsurance Company (Ocean Re) and Energy Risk Indemnity Reinsurance (ERI Re) have merged their operations, and the combined company is now training its sights on London and Latin America for expansion.

The transaction has been executed with all the required authorisations and permits obtained from Barbados’ Financial Services Commission (FSC) and relevant regulators in December 2019. Currently, both companies are regulated by the FSC of Barbados.

ERI Re is now the major shareholder of Ocean Re, following a multi-transactional deal that involved complementary operations merger, capitalisation and group reorganisation.

Following the deal, Ocean Re management team has remained unchanged with Carlos Chamorro continuing to serve as the global CEO and head of operations.

Ocean Re now has an increased equity amounting to $104.5 million. It said the capital will be used to provide excess capacity to expand its product offering, increase territorial coverage in LatAm, and open in new markets.

Together, the group has reinsurance operations in 73 countries across the Americas, the United Kingdom, and other countries in Europe, Asia, and Africa.

Ocean Re alone has offices, representations and agents in Barbados, Panama, and Ciudad de Mexico, and is planning expansion to London and Bogota.

Meanwhile, AM Best has placed under review with developing implications the financial strength rating of A- (Excellent) of Ocean Re, taking into account its corporate structure, balance sheet strength and revised strategy.

According to the agency, the developing implications on the under-review status recognises the company's ongoing geographical diversification that could derive from the merger as well as potential improvements in its capital position.