Insurance rating agency AM Best has affirmed the financial strength rating of A- (Excellent) and the long-term issuer credit rating of “a-” to Massy United Insurance Ltd (Massy United) (Barbados). AM Best also maintained a stable outlook for Massy’s credit ratings.
“The ratings reflect Massy United’s balance sheet strength, which AM Best categorises as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management,” the ratings agency explained
AM Best further noted that the Barbados-based insurance company’s balance sheet demonstrates risk-adjusted capitalisation, which is at the highest level of Best’s Capital Adequacy Ratio (BCAR).
In addition, Massy United’s balance sheet has the support of a comprehensive reinsurance programme that mitigates exposure to natural catastrophe events, adequate reserves and ample liquidity.
“The ratings reflect Massy United’s balance sheet strength, which AM Best categorises as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.”— AM Best
However, the review highlighted one possible area of weakness. “Massy United’s ultimate parent is Massy Holdings Ltd, a large Trinidad-based conglomerate that is publicly traded on the Trinidad and Tobago Stock Exchange. Capital growth may be constrained by the company’s dividend payments to its ultimate parent,” Am Best wrote.
Massy United offers a full range of personal and commercial insurance products, including property and motor, in several Caribbean countries.
The company’s historically profitable operating performance has been attributed to profitable underwriting, especially in non-catastrophe years, with steady levels of investment income. Notwithstanding, Massy United’s earning capacity is subject to highly competitive regional markets and face the constrained by a low interest rate environment and financial and economic challenges in Barbados.