A.M. Best Revises Outlooks to Stable for GBG Insurance Limited

LONDON--(BUSINESS WIRE)-- A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of GBG Insurance Limited (GBG) (Guernsey).

The revised outlooks reflect an improvement in GBG’s consolidated risk-adjusted capitalisation following the initial public offering (IPO) of its parent company GBGI Limited (GBGI) on the AIM market of the London Stock Exchange.

Benefiting from the proceeds of its listing, the group’s consolidated shareholders’ equity increased at its June 2017 financial year end, leading to improved risk-adjusted capitalisation. A.M. Best expects GBG’s balance sheet strength to remain adequate for its rating level. A.M. Best believes that as a publicly traded company, GBG will gain added financial flexibility and improve its governance and risk management capabilities in line with market practices.

GBG’s operating performance remains solid, despite the negative results of GBG Inc., a managing general underwriter that markets and administers products for the group. The company maintains a niche business profile as a provider of international life and health products, with over half of its business originating from the regions of Latin America and Africa.

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

Valeria Ermakova
Senior Financial Analyst

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Tim Prince
Director, Analytics

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Christopher Sharkey
Manager, Public Relations

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Jim Peavy
Director, Public Relations

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Source: A.M. Best