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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 01, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and assigned an issuer credit rating (ICR) of "a-" to United Insurance Company Limited (United) (Barbados). The outlook for both ratings is stable.
The ratings reflect United's strong capitalization, favorable underwriting performance and solid regional market profile. United is a regional insurer with a focus on personal and small commercial lines throughout the Caribbean. The company's parent, Barbados Shipping and Trading Company Limited (BS&T), is publicly-traded on the Barbados and Trinidad stock exchanges.
United has reported consistent underwriting profits over the past several years as a result of prudent underwriting and conservative risk management strategies. This has enabled United to significantly enhance its capital position since there have been minimal dividend payments to BS&T and most of its earnings have been retained. United is a leading insurer in several of its markets and enjoys excellent brand recognition throughout its regional operating territories. Catastrophe risk is mitigated by United's conservative reinsurance program, which has protected the company's surplus from catastrophic losses despite increased hurricane activity in the region.
Partially offsetting these rating strengths are the increasingly competitive regional markets, the company's reliance on reinsurance and the uncertainty surrounding its future ownership. BS&T has been an acquisition candidate for the past several months; and its outcome remains uncertain, as are the plans for United if BS&T is acquired.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.