The Tribune

A Bahamian property and casualty insurer has seen its "financial strength" and credit rating reaffirmed by the industry's leading global assessor.

Summit Insurance Company, through which Insurance Management places most of its general underwriting business, was assessed as having an A- (Excellent) financial strength rating by A. M. Best. It also kept the insurer's long-term issuer credit rating at 'a-', together with a stable outlook.

A. M. Best said the ratings reflected Summit’s balance sheet strength, which it described as "strongest", combined with its "strong operating performance, limited business profile and appropriate enterprise risk management".

The insurance industry rating agency added: "Summit’s balance sheet strength is assessed at the strongest level, based on supportive risk-adjusted capitalisation; favourable earnings, which have been accretive to surplus growth; and the utilisation of reinsurance to reduce its net exposure to natural catastrophes such as hurricanes.

"Overall operating performance has been strong and profitability ratios compare favourably with its rated Caribbean peers, especially in non-catastrophe years. However, A. M. Best considers Summit’s business profile to be limited due to geographic and product line concentration.

"This exposes the company to highly competitive soft pricing conditions, moderate economic and political risk and elevated financial system risk, as well as changes in the underwriting cycle and the potential for significant gross losses from severe weather-related events," it continued.

"The ratings also take into consideration the highly competitive domestic property/casualty insurance market conditions and the moderate country risk of The Bahamas."