AM Best


AM Best Affirms Credit Ratings of RF&G Insurance Company Limited


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Elí Sánchez
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FOR IMMEDIATE RELEASE

MEXICO CITY - NOVEMBER 24, 2021 10:07 AM (EST)
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of RF&G Insurance Company Limited (RF&G) (Belize). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect RF&G’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

RF&G is the leading property/casualty insurer in Belize, with over a 50% market share of this segment. The company is wholly owned by its holding company, G.A. Roe & Sons Limited (ROE), which operates as a finance, management and investment company. RF&G was established in Belize in 1964, when the insurance operation was called Horncastle (British Honduras) Ltd. In 2005, ROE acquired Regent Insurance and merged the operations, resulting in a 2008 name change to RF&G Insurance Company Limited. RF&G’s business portfolio, as of year-end 2020, was composed of fire (66%), motor (22%), casualty (15%) and the remaining a mix of marine, aviation, bonds and title.

AM Best considers RF&G’s balance sheet to be very strong; presenting considerable growth in reported surplus from the profitability of its operations. In addition, risk-adjusted capitalization reflects the company’s conservative risk appetite supported by an adequately set reinsurance program. Nevertheless, the volume of its capital, gross exposure to catastrophe risk and reinsurance dependence limits AM Best’s view of the company’s balance sheet strength. Additionally, AM Best considers RF&G’s ERM practices as appropriate given its comprehensive and appropriate risk framework, and the low complexity of its operations.

AM Best considers the company’s operating performance, as of December 2020, to be adequate, reflecting that claims frequency and costs were limited by COVID-19 pandemic travel restrictions and the growth in the corporate book of business. In 2021, RF&G has focus in its underwriting quality amid a gradual recovery in economic activity and in claims experience.

Macroeconomic factors in Belize continue to be a key concern there, including access to U.S. dollars in the financial system and the credit quality of eligible investments to cover insurance obligations. Despite this, AM Best considers RF&G’s business profile as neutral, as management has worked proactively with financial authorities, regulators and business partners, including reinsurers to face any potential adversities resulting from the current economic conditions.

Negative rating actions could take place if the risk-adjusted capitalization decreases due to volatility in its net results or from capital outflows. Negative rating actions also could occur if Belize’s macroeconomic environment pressures the financial flexibility of the 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 Oct. 13, 2017)

  • Understanding Global BCAR (Version July 22, 2021)

  • Catastrophe Analysis in AM Best Ratings (Version Oct. 13, 2017)

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

  • Scoring and Assessing Innovation (Version March 5, 2020)

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, please refer to Guide to Best’s Credit Ratings.


  • Previous Rating Date: Nov. 24, 2020

  • Date Range of Financial Data Used: Dec. 31, 2015-June 30, 2021

This press release relates to rating(s) that have been published on AM Best’s website. For additional 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.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. 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.


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