AM Best Information Services

AUGUST 03, 2022 03:29 PM (EDT)

AM Best Revises Outlooks to Stable for Guardian Holdings Limited and Its Subsidiaries

 Louis Silvers
Senior Financial Analyst
+1 908 439 2200, ext. 5802

Jacqalene Lentz
+1 908 439 2200, ext. 5762

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204


OLDWICK - AUGUST 03, 2022 03:29 PM (EDT)
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Guardian Life of the Caribbean Limited (GLOC) and Guardian General Insurance Limited (GGIL). Concurrently, AM Best has revised the outlooks to stable from negative and affirmed the Long-Term ICR of “bbb-” (Good) of Guardian Holdings Limited (GHL), a publicly traded holding company and the parent of GLOC and GGIL. GHL is listed on the Trinidad and Tobago and Jamaica Stock Exchanges. All companies are domiciled in Port of Spain, Trinidad.

The ratings of GLOC and GGIL reflect their balance sheet strength, which AM Best assesses as strongest, as well as their strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings of GHL, GLOC and GGIL acknowledge GHL’s consolidated balance sheet strength. The steady profitability and positive cash flows from GLOC, which is GHL’s core life insurance subsidiary, enhances GHL’s overall balance sheet strength and debt servicing capabilities. GHL’s parent, NCB Financial Group Limited (NCB), and its wholly owned subsidiary, NCB Global Holdings Limited, owns a majority of the outstanding shares in GHL. NCB’s exposure to credit risk associated with Jamaica’s sovereign debt may have a negative potential indirect impact on GHL’s balance sheet strength.

The ratings of GLOC acknowledge its strategic position within the GHL group, favorable competitive market position in the Trinidad and Tobago markets, consistently positive operating performance, the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and diversified business profile.

The ratings of GGIL acknowledge its strategic position within the GHL group, its leading regional market presence and positive operating results over the longer term. Partially offsetting these positive rating factors are the challenging property/casualty market conditions throughout the Caribbean, GGIL’s exposure to catastrophe events and its corresponding reliance on reinsurance to safeguard capital. GGIL has relied on reinsurance to limit this exposure.

The stable outlooks reflect stabilizing regional economic conditions in the Caribbean. There is still substantial uncertainty in future economic conditions, which could be impacted materially by tourism and energy factors. AM Best will continue to monitor the conditions in the Caribbean region and take appropriate rating actions as conditions change.

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.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.