Best’s News & Research Service - October 27, 2017 01:58 PM (EDT)
A.M. Best Affirms Credit Ratings of Colina Insurance Limited and Colina Holdings Bahamas Limited
- October 27, 2017 01:58 PM (EDT)
Oldwick //BestWire// - A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Colina Insurance Limited (Colina). Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb-” of Colina Holdings Bahamas Limited (CHBL) [BISX: CHL]. Both companies are domiciled in Nassau, Bahamas. Colina is a wholly owned subsidiary of its publicly traded parent, CHBL, which in turn is majority owned by AF Holdings Ltd. (AFH). The outlook of these Credit Ratings (ratings) is stable.
The rating affirmations for Colina reflect the company’s leading position in the life/health market in the Bahamas, its strong risk-adjusted capitalization and favorable operating results. Partially offsetting these strengths are delinquencies in the company’s mortgage loan portfolio and a narrow geographic profile in the Bahamas.
Colina enjoys a leading market share in the region in its selected segments and its risk-adjusted capitalization is appropriate relative to its investment and insurance risks. A.M. Best expects a continuation of a normalized level of profitability based on recent performance measures including favorable return metrics. However, given the mature nature of the market, Colina’s top line growth has been fairly flat in recent years.
Economic headwinds within the Bahamas’ economy and potential mortgage loan delinquencies continue to pose rating concerns for the company in the near to intermediate term. While A.M. Best remains concerned over mortgage loan exposures and delinquencies relative to total stockholders’ equity, A.M. Best notes that over the past several years the company has decreased its exposure to such asset classes in the aggregate and as a percentage of total invested assets.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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