A.M. Best Affirms Ratings of National General Insurance Corporation (NAGICO) N.V. and Nagico Insurance Company Limited

OLDWICK, N.J.--()--A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit ratings of “bbb” of National General Insurance Corporation (NAGICO) N.V. (NAGICO) (St. Maarten) and Nagico Insurance Company Limited (NICL) (Anguilla). The outlook for all ratings is stable.

The ratings reflect NAGICO and NICL’s overall profitability, improved underwriting results, adequate risk-adjusted capitalization and NAGICO’s dominant market presence in its domestic market. NAGICO is the leading property/casualty insurer in St. Maarten with a dominant market share in the Dutch Caribbean, while NICL has a strong market presence in several overseas markets. Also reflected in the ratings is the common ownership and shared systems of NAGICO and NICL.

NAGICO, and to a lesser extent, NICL, have experienced strong, organic surplus growth through retained earnings, which has been derived from positive overall earnings and minimal dividend requirements. The continued surplus growth has resulted in more than adequate consolidated risk-adjusted capitalization. Furthermore, NAGICO has recently begun to build out and formalize its enterprise risk management program, which is led by a dedicated Chief Risk Officer.

Partially offsetting these positive rating factors are NAGICO and NICL’s rapid growth phase, which the group is in the process of winding down, and the highly competitive regional markets in which both companies operate. Additionally, NAGICO and NICL, like other Caribbean insurers, have significant exposure to catastrophic losses. Both companies manage this risk through the utilization of reinsurance to limit their catastrophe exposure to a manageable level and to protect their surplus.

Factors that could contribute to rating enhancement include continued improvement in NAGICO and NICL’s underwriting performance and risk-adjusted capitalization, consistent long-term overall profitability and an upgrade in St. Maarten and Anguilla’s country risk tier ratings. Factors that could lead to negative rating actions would include deterioration in NAGICO and NICL’s risk-adjusted capitalization or underwriting performance and a downgrade in St. Maarten and/or Anguilla’s country risk tier ratings.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. 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.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company, Inc.
Scott Mangan, 908-439-2200, ext. 5593
Financial Analyst
scott.mangan@ambest.com
or
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
peter.dickey@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

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Contacts

A.M. Best Company, Inc.
Scott Mangan, 908-439-2200, ext. 5593
Financial Analyst
scott.mangan@ambest.com
or
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
peter.dickey@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com