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FOR IMMEDIATE RELEASE
OLDWICK - APRIL 25, 2017 03:03 PM (EDT)
A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of M&C General Insurance Company Limited (M&C General) (St Lucia). The outlook of these Credit Ratings (ratings) remains positive.
The ratings reflect M&C General’s supportive balance sheet strength, solid overall earnings in recent years and local market expertise. In addition, the ratings recognize M&C General’s affiliation with its ultimate parent, Goddard Enterprises Limited, one of the largest Barbados-domiciled conglomerates. M&C General benefits from access to the group’s resources, including financial and investment management and information technology.
M&C General’s surplus growth in recent years is attributable to its favorable underwriting results and consistent levels of investment income. This, as well as the company’s comprehensive reinsurance program, has enabled the company to maintain very strong risk-adjusted capitalization. M&C General’s management team has extensive knowledge of the insurance market in St. Lucia and continues to maintain effective risk management strategies. Furthermore, catastrophe risk is mitigated by M&C General’s conservative reinsurance program, which protects the company’s capital from the frequency and severity of events.
Partially offsetting these strengths are the geographic concentration of M&C General’s business in an increasingly competitive domestic market, its strong reliance on reinsurance as a catastrophe risk mitigation strategy and local regulatory risk. Despite these concerns, A.M. Best anticipates that M&C General will continue to generate favorable earnings and maintain strong risk-adjusted capitalization.
The ratings could be impacted positively by continued improvement in underwriting performance and overall profitability, or an upgrade in St. Lucia’s country risk tier rating. The ratings may be impacted negatively by a sustained decline in overall profitability, significant weakening of the balance sheet or a downgrade in St. Lucia’s country risk tier rating.
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.