AUGUST 31, 2018 12:15 PM (EDT)
A.M. Best Affirms Credit Ratings of Sagicor Financial Corporation Ltd and Rated Subs; Upgrades ICR of Sagicor Life Jamaica Ltd
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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 31, 2018 12:15 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of the following subsidiaries of Sagicor Financial Corporation Limited (SFC) (Bermuda): Sagicor Life Inc. (St. Michael, Barbados) and Sagicor Life Insurance Company (Austin, TX). Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb-” of SFC and the Long-Term Issue Credit Rating of “bbb” on the USD 320 million, 8.875% senior unsecured bonds that mature in 2022 of Sagicor Finance (2015) Limited (Cayman Islands), noting increased government debt, reduced financing options, minimal fiscal reforms and limited monetary policy options available in Barbados. The outlook of these Credit Ratings (ratings) is stable.
In addition, A.M. Best has removed from under review with positive implications and upgraded the Long-Term ICR to “bbb+” from “bbb” and affirmed the FSR of B++ (Good) of Sagicor Life Jamaica Limited (Kingston, Jamaica). The outlook assigned to these ratings is stable.
The ratings of Sagicor Life Jamaica Limited reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). Sagicor Life Jamaica Limited has a consistent history of high earnings and revenue, in addition to growth, and a very strong position in the Jamaica market. A.M. Best’s country risk assessment has improved to Country Risk Tier 4 from a Country Risk Tier 5, which impacts the assessment of country risks in Jamaica.
The ratings of Sagicor Life Inc. reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate ERM. Sagicor Life Inc. has a record of consistent profitability and has very strong brand recognition. Offsetting rating factors include country risks in Barbados.
The ratings of Sagicor Life Insurance Company reflect its balance sheet strength, which A.M. Best categorizes as adequate, as well as its adequate operating performance, neutral business profile and appropriate ERM. The company continues to benefit from parental support in the form of a capital maintenance agreement to maintain an adequate level of risk-adjusted capital that covers expansion expenses. However, historical support was mainly in the form of internal surplus notes, which constitute more than half of its capital and surplus position.
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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