Press Release - AUGUST 10, 2018
A.M. Best Affirms Credit Ratings of Sagicor General Insurance Inc.
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 10, 2018
The ratings reflect Sagicor General’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
These factors are supported by Sagicor’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) and the financial flexibility of being an indirect subsidiary of Sagicor Financial Corporation Limited (SFC) (Bermuda), a publicly traded holding company that is listed on the Barbados, Trinidad and London stock exchanges. SFC has a long market history through its operating subsidiaries, very strong brand recognition and diversified geographical reach throughout the Caribbean region. Sagicor General also benefits from its competitive position in the markets it serves and the reinsurance support provided by its long-standing reinsurance partners.
Sagicor General is one of the leading property and auto insurers in Barbados. The company also maintains a significant presence in Trinidad and Tobago. Aside from the adversity encountered from Hurricane Maria in 2017, Sagicor General has generally produced positive overall operating results, which are derived from its significant ceding commissions and underwriting gains from its private passenger auto book.
Additional rating considerations include difficult local macroeconomic conditions and the increasingly competitive regional insurance environment throughout the Caribbean. In addition, the company has significant loss exposure in the region to catastrophic weather events, which is mitigated materially by a comprehensive reinsurance program backed by quality reinsurers. Prospectively, earnings remain subject to a mature, highly competitive regional market and catastrophe losses, given its exposure.
The stable rating outlooks reflects A.M. Best’s expectation that the company’s rating fundamentals will remain unchanged in the intermediate term, including balance sheet strength remaining in the strongest category and overall operating performance commensurate with similarly rated peers.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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