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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 09, 2016 11:56 AM (EST)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of Bahamas First General Insurance Company Limited (BFG) (Nassau, Bahamas) and Cayman First Insurance Company Limited (CFI) (Cayman Islands). The outlook for all ratings is stable. Both companies are subsidiaries of Bahamas First Holdings Limited (BFH) (Nassau, Bahamas).
The ratings of BFG reflect its supportive risk-adjusted capitalization, continued favorable operating performance and leadership position in the Bahamian property and casualty insurance market. These factors are supported by BFG’s local market expertise and conservative catastrophe reinsurance program. Partially offsetting these positive rating factors are BFG’s geographic concentration of risk and its dependence on reinsurance as a result of its exposure to catastrophic wind events in the Caribbean. Additionally, competition within the Bahamian insurance market is strong and A.M. Best remains concerned regarding the weak economic and fiscal outlook for the Bahamas.
The ratings of CFI recognize its improved overall results and stronger capitalization, as well as management’s expertise and knowledge of the Cayman market. Continued improvement in the performance of the company’s health segment has enhanced overall earnings. Like its affiliate, BFG, these factors are also supported by CFI’s conservative catastrophe reinsurance program. Partially offsetting these positive rating factors are the geographic concentration of its operations in the Cayman Islands and its reliance on reinsurance to protect its earnings and surplus.
This press release relates to rating(s) 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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.