AM Best


AM Best Comments on Credit Ratings of Sagicor Financial Corp Ltd and Sagicor Life Following Announced Acquisition Agreement


CONTACTS:

Louis Silvers
Senior Financial Analyst
+1 908 439 2200, ext. 5802
louis.silvers@ambest.com

Anthony McSwieney
Senior Financial Analyst
+1 908 439 2200, ext. 5715
anthony.mcswieney@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 17, 2019 04:09 PM (EDT)
AM Best has commented that the Credit Ratings (ratings) of Sagicor Financial Corporation Limited (SFC) (Bermuda) and its subsidiary, Sagicor Life Inc. (Sagicor) (St. Michael, Barbados), remain unchanged following the announcement that Sagicor has entered into an agreement to acquire approximately USD 1.2 billion of life, annuity and health liabilities of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad) and British American Insurance Company Trinidad Limited (BAT) (Trinidad). These portfolios were held under the control of the Central Bank of Trinidad and Tobago under certain special powers of the Central Bank Act. These liabilities are a combination of universal life, whole life, term life, annuities, group life, health and creditor policies. As part of this announced deal, Sagicor will receive approximately USD 1.2 billion in assets, which matches the anticipated amount of liabilities.

While the impact to Sagicor’s balance sheet is material given the size of the acquired blocks, AM Best notes that the company’s risk-adjusted capitalization will remain supportive of its current ratings. AM Best expects that the transaction will add a moderate amount of income to operating earnings. Financial leverage and interest coverage should remain within AM Best’s expectations for the current rating levels. The transaction is expected to close in 2020, pending regulatory approval and other customary closing conditions.

Sagicor Life Inc. has a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-”. Its ultimate parent, Sagicor Financial Corporation Limited has a Long Term ICR of “bbb-”. The outlook of these ratings remains stable.

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.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
088130 Sagicor Financial Company Ltd.
086569 Sagicor Life Inc.