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FOR IMMEDIATE RELEASE
MEXICO CITY - SEPTEMBER 22, 2023 02:26 PM (EDT)
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:
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