OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb+” of Republic Insurance Company (Cayman) Limited (Republic Insurance) (Cayman Islands). The outlook of the FSR remains stable.
The Credit Ratings (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 revised Long-Term ICR outlook reflects the negative impact from the recent downgrade in the credit quality of Republic Financial Holdings Limited, which owns 100% of the common shares of Republic. The operating performance of Republic Insurance is highly correlated to loan demand at its parent bank, which is expected to be hampered due to the current economic environment caused by the COVID-19 pandemic.
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