A.M. Best Affirms Credit Ratings of Caribbean Alliance Insurance Company Limited

OLDWICK, N.J.--()--A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Caribbean Alliance Insurance Company Limited (CAIC) (Antigua and Barbuda). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CAIC’s continued strong risk-adjusted capitalization, historically favorable overall results and established market presence in the Eastern Caribbean. The ratings also consider CAIC’s conservative management philosophy and effective risk management procedures, which includes a comprehensive reinsurance program developed to mitigate exposure to natural catastrophes.

CAIC continues to enhance its surplus position as a result of better than average earnings from robust underwriting results and steady levels of interest income. CAIC’s risk-adjusted capitalization and operating performance metrics consistently place the company toward the top of its Caribbean peer group. The ratings are further bolstered by CAIC’s strong market profile and its management team’s extensive knowledge of the territories in which the company operates.

Partially offsetting these rating strengths are the regional concentration of CAIC’s operations in the Caribbean and its continued exposure to natural catastrophes, making the company dependent on reinsurance in its property segment. Furthermore, insurance market conditions in the Caribbean remain soft and difficult overall economic conditions throughout most of the Caribbean have persisted, negatively impacting insurance growth.

The ratings may be favorably impacted by improvement in the country risk ratings of Antigua and Barbuda or adversely impacted by significant deterioration in risk-adjusted capitalization or an unfavorable earnings trend.

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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.

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

Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Ricardo Longchallon
Senior Financial Analyst
+1 908 439 2200, ext. 5676
ricardo.longchallon@ambest.com
or
Charles M. Huber
Director
+1 908 439 2200, ext. 5122
charles.huber@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best
Ricardo Longchallon
Senior Financial Analyst
+1 908 439 2200, ext. 5676
ricardo.longchallon@ambest.com
or
Charles M. Huber
Director
+1 908 439 2200, ext. 5122
charles.huber@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com