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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 02, 2015 11:06 AM (EDT)
A.M. Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of “a-” of Guardian Life of the Caribbean Limited (GLOC) and Guardian General Insurance Limited (GGIL). Concurrently, A.M. Best has affirmed the ICR of “bbb-” of Guardian Holdings Limited (GHL), a publicly traded holding company and the ultimate parent of GLOC and GGIL. The outlook for all ratings is stable. GHL is listed on the Trinidad and Tobago stock exchange. All companies are domiciled in Port of Spain, Trinidad.
The affirmation of the ratings of GLOC and GGIL reflect GHL’s fairly stable leverage position, consolidated balance sheet strength and premium growth over the past several years. The consistent profitability of GLOC and GGIL, which are core insurance subsidiaries of GHL, enhances the overall strength of GHL’s balance sheet and debt servicing capabilities. Nevertheless, A.M. Best notes that the outstanding level of financial leverage at GHL remains somewhat elevated relative to total capitalization. Moreover, GHL’s exposure to Jamaica through its life and non-life operations remains an area of concern.
The ratings of GLOC acknowledge its strategic position within the GHL group, strong competitive position in the Trinidad and Tobago markets, consistently positive operating results from its life and pension and health insurance lines and its adequate level of risk-adjusted capitalization.
Offsetting these positive rating factors are GLOC’s moderately increased insurance benefits and claims expenses, the impact of continuing volatility in the local, regional and global equity markets and the competitive and mature nature of the Trinidad and Tobago insurance marketplace.
The ratings of GGIL recognize its leading regional market presence, historically profitable operating performance and more than adequate risk-adjusted capitalization. Additionally, GGIL’s strong return metrics and underwriting performance compares favorably with its property/casualty Caribbean peers. Partially offsetting these positive rating factors are the highly competitive and challenging property/casualty market conditions throughout the Caribbean, as well as GGIL’s exposure to catastrophic events and corresponding reliance on reinsurance to safeguard capital.
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 visit A.M. Best’s Ratings & Criteria Center.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.