OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of Guardian Life of the Caribbean Limited (GLOC). Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb-” of Guardian Holdings Limited (GHL), a publicly traded holding company and the ultimate parent of GLOC. The outlook of these Credit Ratings (ratings) is stable. GHL is listed on the Trinidad and Tobago stock exchange. Both companies are domiciled in Port of Spain, Trinidad.
The affirmation of GLOC’s ratings reflect GHL’s fairly stable leverage position, consolidated balance sheet strength and premium growth over the past several years. The consistent profitability of GLOC, which is GHL’s core life insurance subsidiary, enhances GHL’s overall balance sheet strength and debt servicing capabilities. Nevertheless, A.M. Best notes that the outstanding level of financial leverage at GHL remains slightly elevated relative to total capitalization. Moreover, GHL’s exposure to Jamaica through its life and non-life operations remains an area of concern.
The ratings of GLOC acknowledge its strategic position within the GHL group, strong competitive position in the Trinidad and Tobago markets, consistently positive operating results from its life and pension and health insurance lines, its adequate level of risk-adjusted capitalization and diversified business profile.
Offsetting these positive rating factors are GLOC’s moderately increased insurance benefits and claims expenses, the impact of continuing volatility in the local, regional and global equity markets and the competitive and mature nature of the Trinidad and Tobago insurance marketplace.
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.
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