AM Best Affirms Credit Ratings of Caribbean Alliance Insurance Company Limited

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Caribbean Alliance Insurance Company Limited (CAIC) (Antigua and Barbuda). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CAIC’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The balance sheet strength is derived from the company’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital growth has been driven by strong earnings; however, growth was limited in 2020 due to the distribution of a large stockholder dividend. CAIC’s balance sheet strength is supported further by a highly liquid and conservative investment portfolio, and its comprehensive reinsurance program to protect earnings and surplus in the event of a natural catastrophe.

Strong operating results have been bolstered by favorable underwriting performance, especially in non-catastrophe years. Despite an economic shutdown in most of CAIC’s operating territories due to the COVID-19 pandemic, the company produced its strongest performance over the past five-year period. Operating performance metrics continue to rank CAIC amongst the top of its Caribbean peers.

These strengths are offset partially by the company’s high dependence on reinsurers to protect its balance sheet from the impact of catastrophe events. In addition, earnings remain subject to highly competitive regional markets and constrained by the financial and economic challenges in the region.

Nevertheless, AM Best expects the company to continue to produce favorable results supported by its operations in 15 territories throughout the Eastern Caribbean, and that its risk management capabilities and comprehensive reinsurance program will continue to keep its balance sheet strength at the strongest level.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Anthony Molinaro
Senior Financial Analyst

+1 908 439 2200, ext. 5608

[email protected]

Sharon Marks
Associate Director

+1 908 439 2200, ext. 5477

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

[email protected]

Source: AM Best