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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 06, 2010 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of United Insurance Company Limited (United) (Barbados). The outlook for both ratings is stable.
The ratings reflect United's favorable capitalization, strong underwriting performance and solid regional market profile. In addition, United's ultimate parent, Neal & Massy Holdings Limited, is one of the leading local business conglomerates and is publicly traded on the Trinidad and Tobago and Barbados stock exchanges.
United is a leading insurer in several of its markets and enjoys excellent brand recognition throughout its regional operating territories. United has reported consistent underwriting and operating 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 capitalization, which remains more than adequate for its current rating level.
Partially offsetting these positive rating factors is the increasingly competitive regional markets in which United operates and its reliance on reinsurance as a catastrophe risk mitigation strategy. In addition, United's risk profile has changed in recent years through its assumption of European and Asian exposure as part of its reinsurance segment. While this affords United some geographic diversification in its operations, the company is accepting risk in new markets. A.M. Best will continue to closely monitor United's experience with these treaties for any adverse developments.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
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.