AM Best Affirms Credit Ratings of Coralisle Group Ltd. Subsidiaries and CG United Insurance Ltd.

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) for the life/health (L/H) and property/casualty (P/C) operating subsidiaries of Coralisle Group Ltd. (CG). The outlook of these Credit Ratings (ratings) is stable. (See below for a listing of the companies.) CG is a wholly owned intermediate holding company of Edmund Gibbons Limited, the ultimate parent company. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of CG United Insurance Ltd. (CG United), (Barbados) (formerly named Massy United Insurance Ltd.). The outlook of these ratings is positive.

The rating affirmations reflect CG’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

CG completed its acquisition of CG United in May, 2022. The transaction included a debt financing arrangement that raised financial leverage moderately over the near term. AM Best’s balance sheet assessment includes CG’s financial leverage and the strongest level of risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR). The addition of CG United aligns with CG’s strategy to balance its health operations with P/C business across numerous Caribbean jurisdictions and provides the opportunity to sell health business in CG United territories. The integration of CG United with CG’s existing operations remains on the original timetable of 12-18 months and has completed a number of major milestones including the rebranding of Massy to CG United, as well as the combination of the two organizations reinsurance programs. AM Best will continue to monitor the integration efforts through its expected completion in 2023. Earnings in 2022 remain positive on an operating basis as CG is benefitting from earnings contributions from CG United. However, net income is expected to be negatively affected by adverse capital market conditions, which have driven unrealized losses in the investment portfolio.

The ratings affirmation of CG United reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.

CG United continues to maintain the strongest level capitalization as measured by BCAR, with increased financial flexibility as part of CG. 2022 operating earnings are expected to remain positive, as the companies’ covered territories did not experience a material catastrophe event in that period. CG United expects to realize synergies from being part of CG during and through full integration with the organization. The realization of operational synergies may lead to rating enhancement over time.

The FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) have been affirmed with stable outlooks, for the following subsidiaries of Coralisle Group Ltd.:

• Coralisle Insurance (BVI) Ltd.
• British Caymanian Insurance Company Limited
• Coralisle Insurance Company Ltd.
• Coralisle Life Assurance Company Ltd.
• Coralisle Medical Insurance Company Ltd.
• CG Atlantic Medical & Life Insurance Ltd.
• CG Atlantic General Insurance Ltd.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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