OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating 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 AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also reflect Republic Insurance’s established niche in the reinsurance of credit insurance and the strength of its parent, Republic Financial Holdings Limited [Trinidad and Tobago Exchange: RFHL]. Furthermore, the ratings reflect Republic Insurance’s ability to generate consistent earnings, reflecting its favorable expense management and solid net premium growth. Republic Insurance’s total equity continues to increase as a result of consistent operating earnings and the absence of shareholder dividend payouts.
Republic Insurance’s strengths are offset partially by the concentration of earnings and premiums originating in Trinidad and Tobago, which AM Best categorizes as having an elevated country risk. In addition, AM Best does not expect the lack of geographic diversification to change materially over the medium term, as business will continue to be written in primarily Trinidad and Tobago and Barbados. While AM Best believes there is potential exposure to heightened economic and political risks in the other countries where Republic Insurance conducts business, it notes there is currently 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 AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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