Best’s News & Research Service - December 17, 2025 11:45 AM (EST)
AM Best Upgrades Credit Ratings of Nagico Holdings Limited’s Main Subsidiaries
- December 17, 2025 11:45 AM (EST)
//BestWire// - AM Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a-” (Excellent) from “bbb+” (Good) of the two main operating subsidiaries of Nagico Holdings Limited, National General Insurance Corporation (NAGICO) N.V. (St. Maarten) and Nagico Insurance Company Limited (Anguilla) (collectively referred to as (Nagico). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Nagico’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The upgrading of the FSR and the Long-Term ICRs reflects balance sheet strengthening driven by material capital growth from capital contributions from its ultimate parent, First Star, Inc. (First Star) and retained earnings. First Star became the majority owner of Nagico in 2024 and sole owner in 2025.
The very strong balance sheet strength assessment reflects Nagico’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The group has benefitted from explicit capital support from First Star and capital appreciation from favorable net earnings. Invested assets are mostly held in fixed income securities and cash. Like most Caribbean insurance companies, Nagico relies on a highly rated reinsurance program to protect shareholder equity from the financial impact of catastrophic events, which is reflected in its balance sheet strength assessment.
Operating performance has improved significantly since 2023 and through second-quarter 2025. The improvement is the result of targeted growth in each line of business year over year with targeted growth in health, life, property and motor lines of business on islands with rate adequacy. Management continues to focus on growth in territories with low catastrophe exposure. AM Best expects operating results to remain profitable in the near term.
Nagico continues to be one of the largest insurance groups in the Caribbean and benefits from significant brand recognition and a strong market share in several markets. Risks are well diversified geographically with premium spread over 21 territories; however, markets remain highly competitive and economies throughout the Caribbean remain economically challenged.
The ERM for Nagico is assessed as appropriate given its formal ERM program and well-developed risk appetite, tolerance and governance structure. The organization has a mature stress testing procedure that is overseen by the Board of Directors. Additionally, Nagico has regulatory oversight from 17 different regulators across 21 territories that it does business in.
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.