Best’s News & Research Service - December 10, 2025 10:58 AM (EST)
AM Best Affirms Credit Ratings of Casualty & General Insurance Company (Europe) Limited, a Subsidiary of CG Holdings (Gibraltar) Limited
- December 10, 2025 10:58 AM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Casualty & General Insurance Company (Europe) Limited (CGICE) (Gibraltar). The entity is a subsidiary of CG Holdings (Gibraltar) Limited (CGH), the non-operating holding company of the group. The outlook of these Credit Ratings (ratings) is stable.
The ratings of CGICE reflect its strategic importance to the group, and CGH’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
CGH’s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation, which was at the very strong level at year-end 2024, as measured by Best’s Capital Adequacy Ratio (BCAR). The group’s balance sheet strength assessment considers CGH’s good internal capital generation; however, its relatively small capital base exposes it to potential volatility from increased capital requirements, for example stemming from material growth in premium risk. An additional offsetting factor is CGH’s high dependence on reinsurance, with just over 65% of premium ceded at year-end 2024, approximately 35% of which was ceded to a non-rated affiliated company. The associated credit risk is partially mitigated through funds withheld. Moreover, management has already taken steps to decrease its exposure to the single affiliated counterparty, which is expected to reduce further over the short to medium term.
CGH has a track record of good operating performance, demonstrated by a five-year (2020-2024) weighted average combined operating ratio of 88.1% (as calculated by AM Best). With the shift in the business mix toward short-tail insurance lines, loss ratios are expected to remain in line with recent averages; however, sustained profitability during this growth phase will be demonstrated ultimately over time. CGH’s investment income supports overall earnings with a positive, albeit limited, contribution from investments, mainly held as cash and structured deposits, evidenced by a five-year weighted average investment yield (excluding unrealised gains) of 0.9%.
Through its primary insurance vehicle, CGICE, the group is licensed to write a variety of insurance products, with a focus on the United Kingdom pet line of business (83% of year-end 2024 gross written premium [GWP]). With GBP 80.8 million of GWP in 2024, CGH’s profile is relatively small, with business concentrated primarily in the competitive United Kingdom insurance market and predominantly written through managing general agents. The group’s ambitious business plans show future premium growth driven by the continued development of its home and pet insurance businesses; however, success is highly dependent on distribution partnerships.
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 (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) 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.