OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” of NCB Insurance Company Limited (NCBIC) (Jamaica). The outlook of these Credit Ratings (ratings) is stable. NCBIC’s direct banking parent is National Commercial Bank Jamaica Limited, which is traded on the Jamaica and Trinidad and Tobago stock exchanges.
The rating affirmations reflect NCBIC’s strong risk-adjusted capitalization and history of stable operating earnings, as well as A.M. Best’s expectation that the company will continue to operate with a similar business and operating profile.
NCBIC provides the Jamaica market with its core group life and creditor life products, sold through its banking parent. In addition, a modest premium volume is generated by its unit-linked annuity product.
While NCBIC has demonstrated a favorable operating profile, the company’s operations are concentrated in Jamaica, which is categorized as a country risk tier five (CRT-5) by A.M. Best.
In addition, a majority of its invested asset portfolio is comprised of Government of Jamaica bonds. A CRT-5 ranking denotes a stressed economic environment with significant economic, financial and political headwinds that are placing a strain on wages and employment, which in turn has the potential to constrain NCBIC’s potential future growth. While these challenges are clearly present, A.M. Best notes that NCBIC has been able to demonstrate a history of stable financial performance to date and expects the company to maintain this stable financial and operating profile going forward.
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