The Tribune

Two Bahamian insurance companies have seen their A (Excellent) financial strength rating reaffirmed by the industry's leading rating agency.

Atlantic Medical Insurance, which now trades as CG Atlantic Medical & Life, and Security and General Insurance Company, which was renamed CG Atlantic General following its parent's rebranding as Coralisle Group, also saw their long-term issuer credit rating maintained at 'a' by A. M. Best.

The rating agency justified its actions on the basis of the former Colonial Group International's "excellent ability to meet its ongoing insurance obligations".

It added: "The ratings reflect Coralisle Group’s balance sheet strength, which A.M. Best categorises as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

"The strength of the Coralisle Group’s ratings is driven by its strongest balance sheet strength assessment, which is primarily based on its strongest level of risk-adjusted capitalisation. AM Best expects the group’s projected earnings to be strong over the near term."

Pointing to Coralisle Group's "strong brand recognition" in the health and property and casualty markets across the Caribbean, A. M. Best added: "Its property business has incurred losses over the past few years from the catastrophic damages caused by Hurricane Dorian in 2019, and hurricanes Irma and Maria in 2017.

"A. M. Best has monitored these loss estimates, collections and related reinsurance contracts of Security and General Insurance Company, the Coralisle Group entity primarily affected by the storm damage in 2019. The financial exposure to Coralisle Group is within its current reinsurance contracts, and the net impact to the organisation has been minimal but has resulted in some earnings fluctuations over the past five years.

"The group’s property and casualty operations have been extended beyond its traditional markets of Bermuda, the Cayman Islands and The Bahamas and, as a result, continues to diversify the composition of its book of business," A. M. Best continued.

"Despite the unprecedented socioeconomic impact and continuing uncertainty presented by the COVID-19 pandemic, the Group’s property and casualty operations have been resilient. In the first three quarters of 2020, the group’s property and casualty results have benefited from the absence of storm and hurricane losses in its operating territories."

"This is a very positive report reflecting sound business practices, prudent planning and teamwork," Naz Farrow, Coralisle Group's chief executive, said. ‘Best’s assessment of the group’s businesses across multiple jurisdictions is a testament to the strength of our management teams and the integrity of our products.

"Ultimately, Best’s assessment underscores our ability to meet the needs of our clients at all times and in all circumstances, validating our people-first approach to the business."