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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 21, 2022 02:49 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) (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, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and supported by steady annual surplus growth in excess of dividend payments to shareholders. However, this assessment is offset partially by the company’s relatively small surplus size and high dependence on reinsurance. Similar to its regional peers, the company relies heavily on reinsurance 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 profiles. 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 in recent 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, while also addressing the regulatory and legal environment. 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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.