OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of the life/health (L/H) and property/casualty (P/C) operating subsidiaries of Coralisle Group Ltd. (referred to as Coralisle Group or the Group). Coralisle Group is a wholly owned intermediate holding company of Edmund Gibbons Limited, the Group’s ultimate parent company. All companies are domiciled in Bermuda, unless otherwise specified. (See below for a detailed listing of the companies.) The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Coralisle Group’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The strength of the Coralisle Group’s ratings is driven by its strongest balance sheet strength assessment, which is primarily based on its strongest level of risk-adjusted capitalization. AM Best expects the Group’s projected earnings to be strong over the near term.
Coralisle Group is a top writer of insurance in the jurisdictions in which it operates, including Bermuda. The Group has strong brand recognition both in the health and P/C markets across the Caribbean. Its property business has incurred losses over the past few years from the catastrophic damages caused by Hurricane Dorian in 2019 and hurricanes Irma and Maria in 2017. AM Best has monitored these loss estimates, collections and related reinsurance contracts of Security and General Insurance Company Limited, the Coralisle Group entity primarily affected by the storm damage in 2019. The financial exposure to Coralisle Group is within its current reinsurance contracts, and the net impact to the organization has been minimal but has resulted in some earnings fluctuations over the past five years.
The Group’s P/C operations have been extended beyond its traditional markets of Bermuda, the Cayman Islands and the Bahamas and, as a result, continues to diversify the composition of its book of business. Despite the unprecedented socioeconomic impact and continuing uncertainty presented by the COVID-19 pandemic, the Group’s P/C operations have been resilient. In the first three quarters of 2020, the group’s P/C results have benefited from the absence of storm and hurricane losses in its operating territories.
In addition, the Group’s health lines of businesses have been stable over the years. AM Best has factored this stability into the ratings, but notes the disruption from health reform in Bermuda may result in pressure on earnings, should further revisions to the nation’s health reform affect the competitive health insurance market landscape. For now, Bermuda’s government has paused any additional healthcare reform initiatives as it responds to the COVID-19 pandemic’s effects on the healthcare system and the economy.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed with outlooks of stable, for the following L/H and P/C operating subsidiaries of Coraisle Group Ltd.:
• Coralisle Medical Insurance Company Ltd.
• Atlantic Medical Insurance Limited (Bahamas)
• Coralisle Life Assurance Company Ltd.
• Coralisle Insurance (BVI) Ltd. (British Virgin Islands)
• Coralisle Insurance Company Ltd.
• Security and General Insurance Company Limited (Bahamas)
• British Caymanian Insurance Company Limited (Cayman Islands)
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