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Sagicor Financial Company Limited's headquarters in St Michael, Barbados. (File photo)

AM Best affirms ratings for Sagicor subsidiaries

Sagicor Financial Company Limited's headquarters in St Michael, Barbados. (File photo)

Insurance ratings agency AM Best last Friday affirmed an “excellent” credit rating for Barbados-based Sagicor Life Inc and a “good” rating for its sister company Sagicor Life Insurance Jamaica Limited, while maintaining a steady outlook for both.

“AM Besthas affirmed the financial strength ratings (FSR) of A- (Excellent) and the long-term issuer credit ratings (Long-Term ICR) of “a-” of Sagicor Life Inc (St. Michael, Barbados)…” a release from the agency said in  part.

(File photo)

“Concurrently, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of “bbb+” of Sagicor Life Jamaica Limited (Kingston, Jamaica,” the release continued.

The US-based insurance rating agency also affirmed positive ratings to the parent company, Sagicor Financial Company Ltd in Bermuda, and another, subsidiary Austin, Texas-based Sagicor Life Insurance company.

Overall, AM Best noted that the ratings of each operation “reflect its balance sheet strength”.

“… Sagicor’s corporate structure, with more of an international footprint, along with the recent capital raise during the past year, mitigates AM Best’s short-term outlook concerns for the Sagicor group of companies”

— AM Best

However, in the case of Sagicor life Inc, the agency said that the ratings also indicated adequate operating performance, favourable business profile and appropriate enterprise risk management (ERM).

On the other hand, while Sagicor Life Jamaica Limited received commendations for strong operating performance and appropriate ERM, it recorded a neutral business profile.

Sagicor Life Jamaica Limited’s headquarters in New Kingston. (File photo)

“While AM Best has concerns with regard to global economic headwinds impact to operating performance metrics for companies operating in the Caribbean, Sagicor’s corporate structure, with more of an international footprint, along with the recent capital raise during the past year, mitigates AM Best’s short-term outlook concerns for the Sagicor group of companies. AM Best will continue to track the economic conditions across the Caribbean and take any appropriate rating actions as developments change,” the release outlined further.