SEPTEMBER 20, 2019 04:28 PM (EDT)
AM Best Removes from Under Review with Developing Implications and Affirms Credit Ratings of Sagicor Financial Corp Ltd and Subs
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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 20, 2019 04:28 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 Rating (Long-Term ICR) of “a-” of Sagicor Life Inc. (St. Michael, Barbados) and Sagicor Life Insurance Company (Austin, TX), and the FSR of B++ (Good) and the Long-Term ICR of “bbb+” of Sagicor Life Jamaica Limited (Kingston, Jamaica). The outlook assigned to these Credit Ratings (ratings) is stable.
Concurrently, AM Best also has removed from under review with developing implications and affirmed the Long Term ICR of “bbb-” of the ultimate parent, Sagicor Financial Corporation Limited (SFC) (Bermuda) and the Long-Term Issue Credit Rating of “bbb” on the USD 320 million, 8.875% senior unsecured bonds that mature in 2022 of Sagicor Finance (2015) Limited (Cayman Islands). The outlook assigned to these ratings is stable.
The ratings of Sagicor Life Inc. reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). Sagicor Life Inc. has a long record of consistent profitability and benefits from strong brand recognition in its operating countries. Offsetting rating factors include an elevated country risk level in Barbados.
The ratings of Sagicor Life Insurance Company reflect its balance sheet strength, which AM Best categorizes as adequate, as well as its marginal operating performance, neutral business profile and appropriate ERM. The company continues to benefit from parental support in the form of a capital maintenance agreement to maintain an adequate level of risk-adjusted capital that covers expansion expenses. However, historical support was mainly in the form of internal surplus notes.
The ratings of Sagicor Life Jamaica Limited reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM. Sagicor Life Jamaica Limited has a consistent history of increasingly high earnings and revenue, in addition to growth, and a very strong market position in the Jamaica market.
AM Best notes that Alignvest Acquisition II Corporation’s acquisition of SFC in 2019 and its pending listing on the Toronto Stock Exchange has improved the company’s capital position and financial flexibility. AM Best will continue to monitor any developments and take any appropriate rating action.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry.