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 Summit Insurance Company Limited (Summit) (Nassau, Bahamas). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Summit’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Summit’s balance sheet strength is assessed at the strongest level, based on supportive risk-adjusted capitalization, favorable earnings, which have been accretive to surplus growth, and the utilization of reinsurance to reduce its net exposure to natural catastrophes such as hurricanes. Overall operating performance has been strong and profitability ratios compare favorably with its rated Caribbean peers, especially in non-catastrophe years.
However, AM Best considers Summit’s business profile to be limited due to geographic and product line concentration. This exposes the company to highly competitive soft pricing conditions, moderate economic and political risk and elevated financial system risk, as well as changes in the underwriting cycle and the potential for significant gross losses from severe weather-related events. The ratings also take into consideration the highly competitive domestic property/casualty insurance market conditions and the moderate country risk of the Bahamas.
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