APRIL 22, 2021 08:36 AM (EDT)
AM Best Removes From Under Review With Developing Implications, Affirms Credit Ratings of Insurance Corporation of Barbados Ltd
|Ricardo A. Longchallon|
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 22, 2021 08:36 AM (EDT)
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Insurance Corporation of Barbados Limited (ICBL) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect ICBL’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings were placed under review with developing implications on Sept. 4, 2020, following the announcement that BF&M Limited, a Bermuda-domiciled holding company and ICBL’s majority shareholder, had sold its 51% share ownership in ICBL to Paynes Bay Finance Inc. (Paynes Bay), an investment vehicle owned and controlled by Joe Poulin.
The rating actions follow the completion of AM Best’s assessment of the transaction, discussions with Paynes Bay and evaluation of the implications for ICBL going forward.
ICBL’s balance sheet strength is underpinned by its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects to remain at the strongest level. AM Best expects ICBL’s operating performance to be adequate in the near term. Operating performance metrics have not been favorable relative to its rated Caribbean peers; however, the company has recorded profitable overall results generally in recent years. ICBL’s business profile assessment reflects the company’s geographic and product concentration. The business profile assessment also recognizes ICBL’s market position as one of the leading property/casualty insurers in its domestic market.
As part of the mandatory take over (a condition of the acquisition), Paynes Bay acquired all of the shares tendered and increased its ownership in ICBL to 57% from 51%. Paynes Bay ownership has also indicated its intent to be long-term investors in ICBL and its willingness to invest in technology to create a scalable insurance organization.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.