Best’s News & Research Service - September 22, 2023 02:27 PM (EDT)
AM Best Places Credit Ratings of RF&G Insurance Company Limited Under Review With Negative Implications
- September 22, 2023 02:27 PM (EDT)
Mexico City //BestWire// - AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” (Good) of RF&G Insurance Company Limited (RF&G) (Belize).
The ratings of RF&G have been placed under review with negative implications following the company’s 100% acquisition of the shares of M&C General Insurance Company Limited on Aug. 31, 2023, from Minvielle & Chastanet Limited, a wholly owned subsidiary of Goddard Enterprises Limited. With this acquisition, RF&G aims to achieve an expanded reach in the Caribbean market and seeks to realize enhancements to its overall business. While the funding of this transaction has not been provided and analyzed, the negative implications reflect AM Best’s uncertainty about the consolidated balance sheet strength post-transaction.
AM Best will continue to monitor the effects of this transaction as they evolve and provide updates as conditions warrant. The ratings will remain under review until the financial, structural and business strategies have been analyzed.
RF&G is the leading property/casualty insurer in Belize, with over 50% of the market share. The company is wholly owned by its holding company, G.A. Roe & Sons Limited, which operates as a finance, management and investment company.
The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
Key insurance criteria reports utilized:
- Evaluating Country Risk (Version May 4, 2023)
- Understanding Global BCAR (Version July 6, 2023)
- Catastrophe Analysis in AM Best Ratings (Version March 10, 2023)
- Available Capital and Holding Company Analysis (Version Oct. 13, 2017)
- Scoring and Assessing Innovation (Version Feb. 27, 2023)
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, relevant sources of information and the frequency for updating ratings, please refer to Guide to Best’s Credit Ratings.
- Previous Rating Date: Oct. 26, 2022.
- Initial Rating Date: Nov. 30, 2018.
- Date Range of Financial Data Used: Dec. 31, 2016-Dec. 31, 2022
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