AM Best affirms credit ratings of Caribbean Alliance Insurance Company

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

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

CAIC’s risk-adjusted capitalization and strong operating performance metrics continue to place the company toward the top of its Caribbean property/casualty peer group. The ratings are supported further by the company’s leadership position in its domestic market, geographic spread of risk and its management team’s extensive knowledge of its operating territories.

The ratings also consider CAIC’s conservative management philosophy and effective risk management procedures, which include a comprehensive reinsurance program developed to mitigate exposure to natural catastrophes.

Partially offsetting these rating strengths is CAIC’s dependence on reinsurers to protect its balance sheet from the impact of catastrophic events. In addition, soft market conditions, higher reinsurance costs and weak economic conditions in a number of CAIC’s operating territories continue to put pressure on profit margins and business retention.

Edited by Nayyar Iqbal

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