OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Insurance Corporation of Barbados Limited (ICBL) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect ICBL’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings were placed under review with developing implications on Sept. 4, 2020, following the announcement that BF&M Limited, a Bermuda-domiciled holding company and ICBL’s majority shareholder, had sold its 51% share ownership in ICBL to Paynes Bay Finance Inc. (Paynes Bay), an investment vehicle owned and controlled by Joe Poulin.
The rating actions follow the completion of AM Best’s assessment of the transaction, discussions with Paynes Bay and evaluation of the implications for ICBL going forward.
ICBL’s balance sheet strength is underpinned by its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which AM Best expects to remain at the strongest level. AM Best expects ICBL’s operating performance to be adequate in the near term. Operating performance metrics have not been favorable relative to its rated Caribbean peers; however, the company has recorded profitable overall results generally in recent years. ICBL’s business profile assessment reflects the company’s geographic and product concentration. The business profile assessment also recognizes ICBL’s market position as one of the leading property/casualty insurers in its domestic market.
As part of the mandatory take over (a condition of the acquisition), Paynes Bay acquired all of the shares tendered and increased its ownership in ICBL to 57% from 51%. Paynes Bay ownership has also indicated its intent to be long-term investors in ICBL and its willingness to invest in technology to create a scalable insurance organization.
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