Property and auto insurer Sagicor General has marked its 16th straight year at the top of the international ratings for its financial health, the ratings agency A.M. Best has announced.
A.M. Best again set both the company’s financial rating and a second long-term issuer credit rating of A-minus, or “excellent”.
“The ratings reflect Sagicor General’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management,” A.M. Best said.
These factors are supported by Sagicor’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) and the “financial flexibility” of being an indirect subsidiary of the Bermuda-domiciled Sagicor Financial Corporation Limited, the statement added. SFC is a publicly traded holding company that is listed on the Barbados, Trinidad and London stock exchanges.
Sagicor General’s financial strength is also being linked to the firm’s dominant market position in the region and the backing for its insurance policies from “its long-standing reinsurance partners”
In marking the milestone, Sagicor General said the rating demonstrates the firm’s financial prudence and risk management.
“It is especially noteworthy that A.M. Best gave a stable outlook for these positive ratings in the intermediate term. Our teams across the region continue to work hard to ensure the longevity of our business and the protection of our valued customers,” said CEO Keston Howell in a release.
A.M. Best did note the company’s performance against tough economic headwinds, and the recovery from the cyclonic winds that ripped through the Eastern Caribbean last year.
“Additional rating considerations include difficult local macroeconomic conditions and the increasingly competitive regional insurance environment throughout the Caribbean. In addition, the company has significant loss exposure in the region to catastrophic weather events, which is mitigated materially by a comprehensive reinsurance programme backed by quality reinsurers. Prospectively, earnings remain subject to a mature, highly competitive regional market and catastrophe losses, given its exposure,” A.M. Best said.
Putting aside the huge pay-outs from the onslaught of Hurricane Maria in 2017, the rating agency applauded the insurance company’s “positive overall operating results” and an increase in the number of private car insurance policies it has underwritten. (SD/PR)