OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of “bbb+” of Republic Insurance Company (Cayman) Limited (Republic Insurance) (Cayman Islands). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Republic Insurance’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Republic Insurance’s ratings reflect the company’s established niche in the reinsurance of credit insurance and the strength of its parent, Republic Financial Holdings Limited (Republic Financial) (Trinidad and Tobago Exchange:RFHL). The ratings also reflect Republic Insurance’s ability to generate consistent earnings, reflecting its favorable expense management and net premium growth. Republic Insurance’s total equity continues to increase as a result of the consistent operating earnings and lack of shareholder dividend payouts.
These strengths are partially offset by the concentration of earnings and premiums originating in Trinidad and Tobago, which A.M. Best categorizes as having an elevated country risk. In addition, the lack of geographic diversification is not expected to change materially over the medium term, as business will continue to be written in primarily Trinidad and Tobago and Barbados. While A.M. Best believes there is the potential exposure to heightened economic and political risks in the other countries Republic Insurance conducts business, A.M. Best notes there currently is only a modest amount of business being reinsured outside of Trinidad and Tobago.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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