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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 08, 2021 12:12 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of M&C General Insurance Company Limited (M&C General) (Castries, St. Lucia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect M&C General’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
M&C General’s balance sheet strength reflects its risk-adjusted capitalization being assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), which has been supported by steady annual surplus growth in excess of dividend payments to shareholders. However, this assessment is partially offset by the company’s relatively small surplus size, with less than USD 10 million in equity, and high dependence on reinsurance. Similar to its regional peers, the company relies heavily on the strength of its reinsurers to manage its catastrophe exposure, minimize earnings volatility and protect surplus. M&C General’s operating performance historically has been better than average when compared with other Caribbean-based insurers with similar product suites. Despite a concentration of risk in St. Lucia’s property and auto segments, the company’s operating performance has not been impacted by severe weather events over the past five years.
M&C General is well-established in its domestic market, which is considered highly competitive with limited potential for organic growth. The company’s ERM program has identified underwriting, investment and operational risks effectively, and has addressed the regulatory and legal environment, as well as reserving, marketing and reputational risks. Moreover, M&C General’s affiliation with its ultimate parent, Goddard Enterprises Limited, one of the largest Barbados-domiciled conglomerates, affords the company access to financial and investment management and information technology.
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.