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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 04, 2020 12:44 PM (EDT)
AM Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb+” from “a-” of Insurance Corporation of Barbados Limited (ICBL) (Barbados). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with developing implications.
The ratings reflect ICBL’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
This rating action follows the announcement that BF&M Limited, ICBL’s majority shareholder, has sold its 51% share ownership in ICBL to Paynes Bay Finance Inc., an investment vehicle owned and controlled by Joe Poulin through his family office, JPK Capital. The rating downgrades reflect the removal of rating enhancement that ICBL received from BF&M Limited.
Additionally, the under review with developing implications status reflects the need for AM Best to assess the new majority shareholder, its strategic plans for ICBL and the potential impact on the company’s rating fundamentals. The ratings will remain under review until AM Best has conducted detailed discussions with JPK Capital and completes its evaluation of the transaction and the implications for ICBL.
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 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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.