A.M. Best Affirms Credit Ratings of Family Guardian Insurance Company Limited and FamGuard Corporation Limited

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Family Guardian Insurance Company Limited (Family Guardian). Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb-” of FamGuard Corporation Limited (FamGuard) [BISX: FAM] (both domiciled in Nassau, Bahamas). Family Guardian is a wholly owned subsidiary of its publicly traded parent, FamGuard. The outlook of these Credit Ratings (ratings) is stable.

The rating actions for Family Guardian reflect its long-standing life insurance marketing presence in the Bahamas, profitable and improved operating performance and solid level of risk-adjusted capitalization. Partially offsetting these strengths is the company’s high exposure to mortgage loans in its investment portfolio.

Family Guardian has a more-than-adequate level of risk-adjusted capitalization and a sustainable marketing presence as one of the two leading life insurance companies in the Bahamas. A.M. Best further notes that company trends with respect to profitability and capital are generally favorable, with consistent growth in stockholders’ equity despite shareholder dividend payments. Family Guardian’s core life and health business segments provide business diversification and competitive advantages in a generally limited and mature marketplace.

Still, Family Guardian faces inherent risks associated with the overall weak economic environment in theBahamas, which can present risks to longer-term financial results and growth opportunities. A.M. Best recognizes that despite the limited growth opportunities in its local market, Family Guardian has been able to grow premium income in core business lines. A.M. Best remains concerned regarding the risks associated with Family Guardian’s high concentration in mortgage loans, but notes that the company’s level of mortgage loans as a percentage of total investment assets, as well as a percentage of total capital, has continued to decline. The company holds mortgage loan provisions, which have proven to be adequate over time; A.M. Best considers this risk exposure as manageable at the current time.

This press release relates to Credit Ratings 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 see A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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A.M. Best

Richard Francis, +1 908-439-2200, ext. 5152

Senior Financial Analyst

richard.francis@ambest.com

or

William Pargeans, +1 908-439-2200, ext. 5359

Director

william.pargeans@ambest.com

or

Christopher Sharkey, +1 908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1 908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best