JUNE 24, 2022 03:31 PM (EDT)
AM Best Assigns Credit Ratings to British Caribbean Insurance Company Limited
|Anthony Molinaro |
Senior Financial Analyst
+1 908 439 2200, ext. 5608
Ricardo A Longchallon
Senior Financial Analyst
+1 908 439 2200, ext. 5676
Manager, Public Relations
+1 908 439 2200, ext. 5159
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 24, 2022 03:31 PM (EDT)
AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb” (Good) to British Caribbean Insurance Company Limited (BCIC) (Jamaica). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect BCIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
BCIC is a property/casualty insurer domiciled in Jamaica and has been in business for approximately 60 years. The company generates the majority of business in its domicile of Jamaica, while also operating in Turks and Caicos and Barbados. BCIC offers an array of insurance products through its branches and agents, including commercial and residential property as well as automobile coverages.
BCIC’s balance sheet strength assessment is supported by its very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), partially offset by high reinsurance dependence on its property book of business to protect surplus and earnings in the event of a catastrophe. The balance sheet strength assessment also reflects the company’s relatively liquid investment portfolio composed of government of Jamaica short-term repurchase agreements, cash and cash equivalents and fixed income securities. The company has been able to generate organic surplus growth, mainly derived from overall earnings and despite paying regular dividends.
BCIC has a proven track record of solid underwriting and overall operating results. Overall earnings have been driven by favorable underwriting performance, as evidenced by the company’s combined ratios over the prior five- and 10-year periods, underpinned by a low expense ratio. Investment income has been a steady contributor to the company’s strong operating results. Return metrics have been solid and ranks BCIC favorably in comparison with its Caribbean peers. The company’s operating performance has benefited from BCIC’s appropriate ERM framework, comprehensive reinsurance program and prudent underwriting guidelines.
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.