AM Best Affirms Credit Ratings of Caribbean Alliance Insurance Company Limited

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Caribbean Alliance Insurance Company Limited (CAIC) (Antigua and Barbuda). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CAIC’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

CAIC’s positive earnings and capital generation have enabled the company to continue to maintain risk-adjusted capitalization assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Strong operating results are supported by favorable underwriting performance, especially in non-catastrophe years. Operating performance metrics continue to place the company high when compared with its Caribbean property/casualty peer group. CAIC’s ratings are supported further by management’s conservative approach to underwriting, and its comprehensive reinsurance program to protect earnings and surplus in the event of a natural catastrophe.

These strengths are offset partially by CAIC’s high dependence on reinsurers to protect its balance sheet from the impact of catastrophe events. In addition, weak economic conditions in several of CAIC’s operating territories from the COVID-19 pandemic could affect cash flows and receivables in the future, leading to pressure on profit margins.

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 Guide to 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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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