Best’s News & Research Service - July 09, 2015 04:11 PM (EDT)
A.M. Best Assigns Ratings to NCB Insurance Company Limited
Oldwick //BestWire// - A.M. Best has assigned a financial strength rating of B (Fair) and an issuer credit rating of "bb+" to NCB Insurance Company Limited (NCBIC) (Jamaica). The outlook assigned to both ratings is stable. The company's direct banking parent is National Commercial Bank Jamaica Limited and is traded on the Jamaican and Trinidad stock exchanges.
The ratings reflect NCBIC's strong risk-adjusted capitalization and history of stable operating earnings with expectations that the company will continue to operate with similar historical financial stability in the future. NCBIC provides the Jamaican market with its core group life and creditor life products sold through its banking parent. In addition, a modest premium volume is generated by its unit-linked annuity product.
While NCBIC has demonstrated a favorable operating profile, the company's operations are concentrated in the Jamaican geographic territory that is rated as a country risk tier five country (CRT-5) by A.M. Best. A CRT-5 country risk rating denotes a stressed economic environment with significant economic, financial and political headwinds placing strain on wages and employment, which in turn has the potential to constrain the future growth potential of NCBIC. While these challenges are clearly present, it is noted that NCBIC has been able to demonstrate a history of stable financial performance to date and is anticipated by A.M. Best to maintain this stable financial and operating profile going forward.
This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.
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