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FOR IMMEDIATE RELEASE
LONDON - JULY 21, 2017 10:15 AM (EDT)
A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of GBG Insurance Limited (GBG) (Guernsey).
The revised outlooks reflect an improvement in GBG’s consolidated risk-adjusted capitalisation following the initial public offering (IPO) of its parent company GBGI Limited (GBGI) on the AIM market of the London Stock Exchange.
Benefiting from the proceeds of its listing, the group’s consolidated shareholders’ equity increased at its June 2017 financial year end, leading to improved risk-adjusted capitalisation. A.M. Best expects GBG’s balance sheet strength to remain adequate for its rating level. A.M. Best believes that as a publicly traded company, GBG will gain added financial flexibility and improve its governance and risk management capabilities in line with market practices.
GBG’s operating performance remains solid, despite the negative results of GBG Inc., a managing general underwriter that markets and administers products for the group. The company maintains a niche business profile as a provider of international life and health products, with over half of its business originating from the regions of Latin America and Africa.
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