Press Release - NOVEMBER 30, 2018

A.M. Best Assigns Credit Ratings to RF&G Insurance Company Ltd

 Elí Sánchez
Senior Financial Analyst
+52 55 1102 2720, ext. 108

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


A.M. Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” to RF&G Insurance Company Ltd (RF&G) (Belize). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect RF&G’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

RF&G is the leading property and casualty (P/C) insurer in Belize, with over a 50% market share of this segment. The company is wholly owned by its holding company, G.A. Roe & Sons Limited (ROE), which operates as a finance, management and investment company. RF&G was established in Belize in 1964 and the insurance operation was called Horncastle (British Honduras) Ltd. In 2005, ROE acquired Regent Insurance and merged the operations, resulting in a 2008 name change to RF&G Insurance. RF&G’s business portfolio as of year-end 2017 was composed of fire (58%), motor (21%), casualty (17%), marine (2%) and aviation, bonds and title (less than 2%).

RF&G’s balance sheet is considered very strong, as risk-adjusted capitalization reflects the company’s conservative risk appetite within its investment portfolio and adequately set reinsurance program. However, the volume of its capital and exposure to catastrophic risk limits capitalization. Additionally, ERM is considered appropriate given its comprehensive and appropriate risk framework, and the low complexity of its operations.

A.M. Best considers the company’s operating performance as of December 2017 to be adequate with improving loss ratios in comparison to previous years when weather-related claims under the fire account caused this indicator to deteriorate. The company also experienced better performance as of October 2018 in general, specifically in its motor segment, generating positive net results. Despite RF&G being able to grow and remain as a market leader, Belize’s scarce growth opportunities limit the company’s ability to improve its business profile and operating performance. The management team has been able to mitigate this factor during the past few years by focusing on underwriting quality, rendering A.M. Best’s view of the business profile to neutral.

Positive rating actions could take place in the intermediate term if RF&G is able to maintain its risk-adjusted capitalization while further mitigating the impact to its capital base arising from catastrophic exposures. Negative rating actions could take place if the company presents lower risk-adjusted capitalization derived from volatility in its net results or from capital outflows.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at

Key insurance criteria reports utilized:

  • Evaluating Country Risk (Version Oct. 13, 2017)

  • Understanding Universal BCAR (Version May 14, 2018)

  • Catastrophe Analysis in A.M. Best Ratings (Version Oct. 13, 2017)

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best’s Credit Ratings.

  • Previous Rating Date: Not rated.

  • Date of Financial Data Used: October 31, 2018.

This press release relates to rating(s) that have been published on A.M. Best’s website. For additional 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 A.M. Best’s Recent Rating Activity web page.

A.M. Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. A.M. Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, A.M. Best cannot attest as to the accuracy of the information provided.

A.M. Best’s credit ratings are independent and objective opinions, not statements of fact. A.M. Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. A.M. Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

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A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.

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