AM Best


AM Best Removes From Under Review, Affirms Credit Ratings of Coralisle Group Subs Following Massy United Acquisition Completion


CONTACTS:

Wayne Kaminski
Senior Financial Analyst—L/H
+1 908 439 2200, ext. 5061
wayne.kaminski@ambest.com

Ricardo Longchallon
Senior Financial Analyst—P/C
+1 908 439 2200, ext. 5676
ricardo.longchallon@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MAY 06, 2022 12:17 PM (EDT)
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a” (Excellent) for the life/health (L/H) and property/casualty (P/C) operating subsidiaries of Coralisle Group Ltd. (Coralisle Group). The outlook assigned to these Credit Ratings (ratings) is stable. (See below for a listing of the companies.) Coralisle Group is a wholly owned intermediate holding company of Edmund Gibbons Limited, the ultimate parent company. Concurrently, AM Best has removed from under review with developing implications and affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Massy United Insurance Ltd. (Massy United) (Barbados). The outlook assigned to these ratings is positive.

The rating actions on Coralisle Group and Massy United are driven by Coralisle Group’s completion of the Massy United acquisition, which closed May 4, 2022. The acquired business is expected to add a wider geographic footprint in 14 additional jurisdictions for P/C offerings, as well as opportunities to cross-sell complimentary health products as its integration plan is executed over time. The additional business adds scale to Coralisle Group’s already growing property business, and synergies are expected to be realized in revenue and expense components of the combined income statement. With the addition of Massy United, which operates in 20 Caribbean territories, Coralisle Group now has a broad Caribbean presence, including in the Bahamas, Turks and Caicos, the British Virgin Islands and the Cayman Islands and Barbados, with expansion into Anguilla, Antigua and Barbuda, Montserrat, Dominica, St. Lucia, St. Vincent, Saint Maarten, Grenada, Trinidad and Tobago, Guyana, Curacao, Aruba, Jamaica and Belize.

The rating affirmations reflect Coralisle Group’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. The deal included a debt financing arrangement that is expected to raise the balance sheet debt leverage over a narrow time continuum, with the flexibility for it to be paid down in a year. AM Best’s assessment factors in the short tail on its balance-sheet leverage, and considers Coralisle Group’s strongest level of risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR). The addition of Massy United is aligned with Coralisle Group’s strategy to balance its health operations with its P/C business across numerous Caribbean jurisdictions. The opportunity to leverage the added scale is expected to be favorable to its long term operating results and its ability to grow its premium in the P/C and health markets. As with any merge of operations, AM Best will monitor the progress of these efforts over the next 12-18 months.

The ratings affirmations of Massy United reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Although no lift is being applied at this time, Massy United expects to realize synergies from being part of the Coralisle Group during and through full integration with the organization, which may lead to rating enhancement over time. Coralisle Group also will embark on a rebrand of Massy United as CG United.

AM Best has removed from under review with developing implications and affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent), each with an assigned outlook of stable, for the following subsidiaries of Coralisle Group Ltd.:


  • Coralisle Insurance (BVI) Ltd.

  • British Caymanian Insurance Company Limited

  • Coralisle Insurance Company Ltd.

  • Coralisle Life Assurance Company Ltd.

  • Coralisle Medical Insurance Company Ltd.

  • CG Atlantic Medical & Life Insurance Ltd.

  • CG Atlantic General Insurance Ltd.

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 Performance Assessments, 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.


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