AM Best has upgraded the Long-Term Issuer Credit Rating (ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Golden Tree Reinsurance Limited (Golden Tree) (Bermuda). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR is stable.

Golden Tree is a subsidiary of Iris Financial Services Limited (IFS) and is owned ultimately by Springbrook Capital Ltd., a private holding company with diversified operations in insurance and financial services.

The Credit Ratings (rating) reflect Golden Tree’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The Long-Term ICR upgrade underscores Golden Tree’s robust risk-adjusted capitalization, supported by positive bottom-line results and an improving average Country Risk Tier (CRT). The stable outlook of the FSR reflects AM Best’s expectation that Golden Tree will be able to maintain its solid balance sheet strength driven by further growth in the United States, while sustaining its favorable trend in operating performance.

Golden Tree was established in 2015, as a segregated portfolio company. In 2019, the company was licensed as a Class 3A insurer under Bermuda law to provide reinsurance capacity for commercial credit and credit life risks as part of the group’s retrocession cover; and as of December 2025, this includes geographic exposure mainly to Colombia’s insurance market, as well as a growing presence in the United States.

The ratings also reflect Golden Tree’s sound operating performance, improving business profile and affiliation to IFS, which provides synergies and operating efficiencies, as well as an appropriate ERM framework. The company continues to expand beyond its core geographic market of Colombia. Growth is supported by specialty lines business, such as pets and renters’ insurance, and by providing coverage to third-party platforms.

Golden Tree’s balance sheet strength level of strongest is underpinned by a capital base reflecting consistent growth from positive net results, in conjunction with its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Additionally, the company’s capital base has strengthened over time because of its sound underwriting practices. In 2025, the company sustained profitability mainly through underwriting, enabling it to generate a return-on-equity ratio of 20%. AM Best expects Golden Tree to maintain its important role in the group’s strategy. AM Best’s expectation comes amid healthy growth prospects and consistent profitability that is generated by business from the group´s proprietary managing general agent, which also has contributed to improve Golden Tree’s geographic footprint in the United States. Investment income, driven by a diversified strategy, has continued to support Golden Tree’s results further; however, the company is not dependent on this revenue to achieve positive bottom-line results.

Factors that could lead to positive rating actions for Golden Tree include successful business diversification through its target geographic expansion, while maintaining profitable results.

Factors that could lead to negative rating actions include a material loss of capital, either from a substantial decline in profitability, due to new business volatility or execution risk, or an aggressive dividend policy, which reduces risk-adjusted capitalization to a level that no longer supports Golden Tree’s ratings.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.