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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 08, 2017 02:44 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” of NCB Insurance Company Limited (NCBIC) (Jamaica). The outlook of these Credit Ratings (ratings) is stable. NCBIC’s direct banking parent is National Commercial Bank Jamaica Limited, which is traded on the Jamaica and Trinidad and Tobago stock exchanges.
The rating affirmations reflect NCBIC’s strong risk-adjusted capitalization and history of stable operating earnings, as well as A.M. Best’s expectation that the company will continue to operate with a similar business and operating profile.
NCBIC provides the Jamaica market with its core group life and creditor life products, sold through its banking parent. In addition, a modest premium volume is generated by its unit-linked annuity product.
While NCBIC has demonstrated a favorable operating profile, the company’s operations are concentrated in Jamaica, which is categorized as a country risk tier five (CRT-5) by A.M. Best.
In addition, a majority of its invested asset portfolio is comprised of Government of Jamaica bonds. A CRT-5 ranking denotes a stressed economic environment with significant economic, financial and political headwinds that are placing a strain on wages and employment, which in turn has the potential to constrain NCBIC’s potential future growth. While these challenges are clearly present, A.M. Best notes that NCBIC has been able to demonstrate a history of stable financial performance to date and expects the company to maintain this stable financial and operating profile going forward.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.