AM Best raises ratings for Junto Re and Junto Seg, sets stable outlook

Core Viewpoint - AM Best has upgraded the Financial Strength Rating of Junto Resseguros S.A. and Junto Seguros S.A. to A (Excellent) from A- (Excellent), reflecting their strong financial position and operational performance [1][3]. Company Overview - Junto Resseguros S.A. operates as a local reinsurer in Brazil, primarily reinsuring Junto Seguros S.A., which has been a leading provider of surety for over twenty years [5]. - Junto Seguros S.A. is recognized as the group's direct market entity [5]. Financial Performance - The upgrade is supported by years of consistent earnings and stable underwriting indicators, backed by a solid capital foundation [4]. - Junto maintains low leverage, strong liquidity, and a diverse retrocession program, enhancing capacity and reducing exposure [7]. - Operating performance has shown clear improvement over the past five years, with elevated interest rates in Brazil contributing to investment income and stronger returns [9]. Strategic Positioning - Junto benefits from operational advantages through its minority shareholder, Travelers Brazil Acquisition LLC, which is ultimately owned by The Travelers Companies, Inc. [6]. - The group is pursuing growth in areas such as performance bonds while expanding into related business lines within Latin America's insurance market [8]. Market Dynamics - Brazil's surety sector is highly competitive, with both domestic and international re/insurers vying for market share [10]. - Economic uncertainty influences market dynamics, prompting companies to explore international opportunities while remaining alert to local market openings [10].