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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 25, 2016 12:30 PM (EDT)
A.M. Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” to Summit Insurance Company Limited (Summit) (Nassau, Bahamas). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Summit’s supportive balance sheet strength, historically favorable operating results and leading market presence in The Bahamas. These rating strengths are partially offset by the company’s geographic and underwriting risk concentration and the challenges that weakened economic conditions and strong competitive market pressure have created for Summit’s overall operating performance and growth opportunities.
Summit, a leading provider of property and casualty insurance in The Bahamas, was formed in response to a lack of capacity following Hurricane Andrew in 1992. It offers an array of insurance products, with its major lines on a gross and net basis being personal and commercial property, motor, marine and other liability. Products are sold through the company’s exclusive agent, Insurance Management Ltd (IMB), owned by a shareholder and founder of Summit.
The company enjoys excellent brand recognition throughout its territory. Operating performance has historically been profitable due to prudent underwriting, conservative risk management and adequate reinsurance protection backed by quality reinsurance partners. Risk-adjusted capitalization is also sufficiently strong to support underwriting, investment and business risks, as well as strategic objectives.
Market conditions in The Bahamas are highly competitive and pricing, particularly on property business, is soft. Organic growth potential is extremely limited. Furthermore, significant recent damage and losses from Hurricane Matthew will tarnish overall results for 2016. However, Summit’s catastrophe reinsurance program adequately protects surplus from such events and the balance sheet is expected to remain strong.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.