Best’s News & Research Service - July 13, 2007 03:32 PM (EDT)
A.M. Best Affirms and Assigns Ratings to CLICO (Bahamas) Limited
OLDWICK, N.J. //BestWire// - A.M. Best Co. has affirmed the financial strength rating (FSR) of B+ (Good) and assigned an issuer credit rating (ICR) of “bbb-” to CLICO (Bahamas) Limited (CLICO Bahamas) (Nassau, Bahamas). The outlook for the FSR is stable, and the outlook assigned to the ICR is stable. CLICO Bahamas is an insurance member of CL Financial Limited (CLF), a diversified holding company based in Trinidad and Tobago.
The ratings of CLICO Bahamas recognize its ownership by CLF, as well as its overall insurance premium growth and modest profitability. CLICO Bahamas benefits from being part of CLF by leveraging information technology, administration, actuarial, investment and other group resources to effect operating efficiencies in its operations.
Offsetting these rating strengths is CLICO Bahamas’ lower stand-alone net income in 2006 and its high exposure to affiliated loans, which constitute its largest asset class. While CLICO Bahamas benefits from its association with CLF, A.M. Best notes that it had not received the parent company’s audited 2006 financial statements at the time of these rating actions, which is viewed as a barrier to transparency.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.