Best’s News & Research Service - May 13, 2020 10:24 AM (EDT)
AM Best Revises Issuer Credit Rating Outlook to Negative for Republic Insurance Company (Cayman) Limited
- May 13, 2020 10:24 AM (EDT)
Oldwick //BestWire// - AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb+” of Republic Insurance Company (Cayman) Limited (Republic Insurance) (Cayman Islands). The outlook of the FSR remains stable.
The Credit Ratings (ratings) reflect Republic Insurance’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The revised Long-Term ICR outlook reflects the negative impact from the recent downgrade in the credit quality of Republic Financial Holdings Limited, which owns 100% of the common shares of Republic. The operating performance of Republic Insurance is highly correlated to loan demand at its parent bank, which is expected to be hampered due to the current economic environment caused by the COVID-19 pandemic.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.