Best’s News & Research Service - August 24, 2021 12:53 PM (EDT)
AM Best Affirms Credit Ratings of Massy United Insurance Ltd.
- August 24, 2021 12:53 PM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Massy United Insurance Ltd. (Massy United) (Barbados). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Massy United’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Massy United’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet also is underpinned by a comprehensive reinsurance program that limits exposure to natural catastrophe events, adequate reserves and ample liquidity. Massy United continues to maintain a strategically conservative investment portfolio mainly composed of fixed income securities and cash and short-term investments. Massy United’s ultimate parent is Massy Holdings Ltd., a large Trinidad-based conglomerate that is traded publicly on the Trinidad and Tobago Stock Exchange.
Massy United offers a full range of personal and commercial insurance products, including property and motor, in a number of Caribbean countries. Adequate operating performance has been attributed to profitable underwriting, especially in non-catastrophe years, supplemented by steady levels of investment income. In 2020, most major business segments were profitable despite economic disruptions due to the COVID-19 pandemic, with the auto and accident segments the primary contributors to earnings.
These strengths are offset partially by the company’s high dependence on reinsurers to protect its balance sheet from the impact of catastrophe events. In addition, earnings remain subject to highly competitive regional markets with limited growth potential and further constrained by the financial and economic challenges in Barbados, which have been impacted negatively by the COVID-19 pandemic due to the country’s reliance on tourism.
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, Best’s Preliminary Credit Assessments 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.