OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of M&C General Insurance Company Limited (M&C General) (St Lucia).
The revised outlook and ratings reflect M&C General’s continued excellent risk-adjusted capitalization and consistent overall earnings in recent years, along with its conservative reinsurance program and local market expertise. In addition, the ratings recognize M&C General’s affiliation with its ultimate parent, Goddard Enterprises Limited, one of the largest Barbados-domiciled conglomerates. M&C General benefits from access to the group’s resources, including financial and investment management and information technology.
M&C General’s surplus growth in recent years is attributable to its solid underwriting results and consistent levels of investment income. This has enabled the company to maintain very strong risk-adjusted capitalization. M&C General’s management team has extensive knowledge of the insurance market in St. Lucia and continues to maintain effective risk management strategies. Furthermore, catastrophe risk is mitigated by M&C General’s conservative reinsurance program, which protects the company’s capital from the frequency and severity of events.
Partially offsetting these strengths are the geographic concentration of M&C General’s business in an increasingly competitive domestic market, its strong reliance on reinsurance as a catastrophe risk mitigation strategy and local regulatory risk. A.M. Best believes that the competitive domestic insurance market and economic pressures in St. Lucia may dampen the company’s excellent earnings and create challenges to maintain or grow market share. However, these concerns are partially mitigated by management’s knowledge of the market and the company’s leadership position as one of the top property/casualty writers on the island. In addition, A.M. Best anticipates continued favorable earnings and strong risk-adjusted capitalization.
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