AM Best Revises Outlooks to Positive for East Caribbean Reinsurance Company Limited
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of
The Credit Ratings (ratings) reflect ECRC’s balance sheet strength, which AM Best assesses as strong as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect ECRC’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). While absolute capital and surplus remains modest, ECRC’s BCAR scores have consistently measured well at the strongest level for the last several years, showing the relative strength of its balance sheet given its lower levels of premium retention. The organization was materially impacted by Hurricane Maria in fiscal year 2018, which prompted it to significantly lower its retention level. Since then, ECRC has grown capital and surplus annually through favorable net earnings, despite occasional dividend payments to its parent entity,
ECRC’s operating performance is assessed as adequate. The company has reported favorable net earnings in each of the last five years due to a more conservative reinsurance structure and the absence of major catastrophic events. ECRC retrocedes most of the business it writes and retains only a modest amount of risk, which is reflected in its loss ratios. Additionally, gross premiums have grown steadily in recent years.
ECRC provides treaty and facultative reinsurance solutions for various lines of property and casualty coverage to
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 Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Source: AM Best
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