A.M. Best Affirms Ratings of Caribbean Alliance Insurance Company Limited

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Caribbean Alliance Insurance Company Limited (CAIC) (Antigua and Barbuda). The outlook for both ratings is stable.

The ratings reflect CAIC’s continued superior risk-adjusted capitalization, historically consistent and favorable operating results and conservative management philosophy. The rating also considers CAIC’s effective risk management procedures, which include its comprehensive reinsurance program developed to mitigate its potential exposure to natural catastrophes.

CAIC has experienced significant organic surplus growth driven by robust underwriting results and steady levels of interest income from the company’s conservative investment portfolio. CAIC’s risk-adjusted capitalization and operating performance metrics consistently place the company toward the top of its Caribbean peer group. The ratings are further bolstered by CAIC’s strong market profile and its management team’s extensive knowledge of the territories in which the company operates.

These positive rating factors are partially offset by CAIC’s regional concentration of its operations in the Caribbean and its continued exposure to natural catastrophes, making the company dependent on reinsurance in its property segment. Furthermore, insurance market conditions in the Caribbean remain soft and increasingly competitive, and difficult overall economic conditions throughout most of the Caribbean have persisted, negatively impacting insurance growth and consumption.

Negative rating actions could occur if there is sustained deterioration of the company’s capital position as measured and modeled by Best’s Capital Adequacy Ratio (BCAR) and if the company deviates from its conservative growth strategy resulting in unanticipated underwriting and overall losses. Positive rating actions could occur if there are sustained underwriting and overall profitability as a result of adequate pricing and effective claims management strategies and continued strong capitalization and risk coverage as measured and modeled by BCAR.

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. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150821005439/en/

A.M. Best Company
Ricardo Longchallon, 908-439-2200, ext. 5676
Senior Financial Analyst
[email protected]
or
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
[email protected]
or
Christopher Sharkey, 908-439-2200, ext. 5159
Manager, Public Relations
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Company

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