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 Rating of “a-” (Excellent) of La Colonial, S.A. – Compañía de Seguros (La Colonial) (Santo Domingo, Dominican Republic).

The Credit Ratings (ratings) reflect La Colonial’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revision of the outlooks to positive from stable reflects La Colonial’s continued improvement in its operating performance, as evidenced by the favorable trend in underwriting results. The combined ratio (non-life) improved to 93% in 2025 from 101.6% in 2022, supported by stable loss ratios and improved expense efficiency, while premium growth remained positive. AM Best expects the favorable trend in operating performance to continue over the intermediate term, supported by disciplined underwriting and continued execution of its business strategy, despite increasing competitive pressures, while maintaining risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

La Colonial is the fifth-largest insurance company in the Dominican Republic, with an 8.7% market share as of June 2026. The company has maintained its leading position in the Dominican Republic despite changing market dynamics, which includes the continuous inflow of new health insurance premiums to the system from new participants. La Colonial operates as a multiline insurer, with 82% of its portfolio directed to property/casualty lines, based on gross written premium, with life/health insurance comprising 18%.

In 2025, La Colonial maintained its track record of positive results, reporting net income of DOP 1,404 million compared with DOP 1,046 million the prior year. During the year, return on equity and return on assets stood at 31.6% and 9.6%, respectively. The benefits paid to net premium written ratio for its life business increased to 71.9% from 65%; however, the segment continued to contribute positively to the company’s overall bottom-line results. For 2026 and onward, operating efficiencies might be harder to sustain; however, AM Best considers La Colonial’s management team to be well-prepared to maintain solid profitability and support continued growth.

La Colonial’s risk-adjusted capitalization remains at the strongest level, as measured by BCAR, supported adequately by a comprehensive reinsurance program that mitigates the potential impact from regional natural disasters on the company’s results. These characteristics are reflected in its solvency and capitalization metrics and its excellent market position. Going forward, AM Best expects the company to continue performing with premium sufficiency, driven by lower technical costs in the medium term.

Positive rating actions could take place if La Colonial sustains its solid underwriting and operating performance with limited volatility, while key performance metrics remain broadly aligned with those of stronger-rated peers. Factors that might lead to negative rating actions include any major changes in La Colonial’s capital base, such as significant dividends or capital outflows, which diminish AM Best’s view of the company’s balance sheet strength.

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.

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