Press Release - NOVEMBER 26, 2019
AM Best Removes From Under Review, Affirms Credit Ratings of Family Guardian Insurance Co. Limited and FamGuard Corporation Ltd.
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 26, 2019
The ratings reflect Family Guardian’s balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
These rating actions follow comprehensive assessments performed by the company of the financial impact to Family Guardian resulting from the devastation from Hurricane Dorian in September. While there was disruption to the company’s distribution, increased benefits and increases in policy lapses, the overall financial impact was limited. The most severe devastation of the storm occurred in the northern islands of Abaco and Grand Bahama where less than 15 percent of the company’s policyholders are located. The island of New Providence, where most of the population and businesses are located, was largely spared.
The balance sheet strength assessment reflects the very strong level of risk-adjusted capital, the absence of leverage, and good liquidity partly offset by the company’s limited investment options and high concentration of sovereign debt holdings. The company’s mortgage loan portfolio had very limited impact due to the relatively low number of loans in the hardest hit areas and property insurance coverage requirements. Operating performance remains strong, with minimal impact to operating earnings resulting from the storm. AM Best expects consistent positive net earnings to continue to support capital growth in the near term. The business profile assessment considers Family Guardian’s good market position in the Bahamas and creditworthy product offerings offset by its geographic concentration in the Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.