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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 29, 2019 11:36 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Caribbean Alliance Insurance Company Limited (CAIC) (Antigua and Barbuda). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect CAIC’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
CAIC’s risk-adjusted capitalization and strong operating performance metrics continue to place the company toward the top of its Caribbean property/casualty peer group. The ratings are supported further by the company’s leadership position in its domestic market, geographic spread of risk and its management team’s extensive knowledge of its operating territories. The ratings also consider CAIC’s conservative management philosophy and effective risk management procedures, which include a comprehensive reinsurance program developed to mitigate exposure to natural catastrophes.
Partially offsetting these rating strengths is CAIC’s dependence on reinsurers to protect its balance sheet from the impact of catastrophic events. In addition, soft market conditions, higher reinsurance costs and weak economic conditions in a number of CAIC’s operating territories continue to put pressure on profit margins and business retention.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry.