Press Release - JANUARY 12, 2018
A.M. Best Revises Under Review Status to Developing for Credit Ratings of Century Insurance Company (Guam) Limited
FOR IMMEDIATE RELEASE
HONG KONG - JANUARY 12, 2018
The actions taken on these Credit Ratings (ratings) follow A.M. Best’s preliminary discussion with CIC Guam’s management regarding the company’s new distribution strategy following the termination of its exclusive managing general agent (MGA), effective Oct. 1, 2017. The company has entered definitive brokers’ agreements with three brokers, one of which is its former MGA, and one agency agreement with an affiliated broker newly established in Guam to serve the insurance needs of parent-related business. The company expects its former MGA to lead the premium contribution of its book of business. CIC Guam also has brought the underwriting function in-house subsequent to the termination of the MGA agreement.
The extended under review status reflects the execution risk associated with the new distribution and underwriting strategy. The potential rating impact is uncertain, given that the ratings have been placed under review with developing implications. A.M. Best will continue to monitor closely CIC Guam’s new business development to assess the impact on its business profile and operating performance over the next six months.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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.
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