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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 26, 2017 08:32 AM (EDT)
A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Massy United Insurance Ltd. (Massy United) (Barbados). The outlook of these Credit Ratings (ratings) remains stable.
The rating affirmations reflect Massy United’s supportive balance sheet strength, positive earnings trend and strong regional market position in its core lines of business. In addition, Massy United has the full support of its ultimate parent, Massy Holdings Ltd., a large Caribbean-based conglomerate, which is publicly traded on the Trinidad and Tobago stock exchange.
Massy United’s balance sheet strength has been supported by historically profitable operating performance and prudent catastrophe risk management, which limits exposure to natural catastrophic events. Overall earnings have been attributed to profitable underwriting supplementing net investment returns. The company has made progress in addressing unfavorable underwriting performance by discontinuing an assumed reinsurance line of business and with a renewed focus on its core Caribbean book.
Nonetheless, underwriting results remain subject to increasingly competitive regional market pressures. The company offers a full range of personal and commercial insurance products including property and motor, in various Caribbean countries, however, its primary markets are Barbados, Trinidad and Tobago, and Antigua. The Caribbean market is mature and may be volatile from time-to-time due to exposure to severe weather events. However, the impact of large losses is materially mitigated by its property catastrophe reinsurance program.
Furthermore, the weak macroeconomic conditions in Barbados create challenges to overall operating performance, growth opportunities and capitalization. Although the outlook for the ratings is stable, negative rating triggers could include adverse operating results relating to its Caribbean book of business that are exacerbated by a large catastrophic event or a downgrade in Barbados’ country risk tier. Positive rating actions could occur if the company exhibits sustainable long-term improvement in operating performance coupled with improvement in Barbados’ macroeconomic environment and country risk tier.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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