While affirming the financial strength ratings (FSR) of A- (Excellent) and the long-term issuer credit ratings (Long-Term ICR) of “a-” to Colina Holdings Bahamas Limited, FamGuard Corporation Limited, and Guardian Holdings Limited (GHL), credit-rating agency AM Best revised their outlook from stable to negative.
“The outlook has been revised to negative from stable and the FSR of B (Fair) and the Long-Term ICR of “bb” have been affirmed for NCB Insurance Company (NCBIC) Limited,” a release from AM Best said, making reference to GHL’s Jamaican parent company and majority shareholder.
“The outlook of the Long-Term ICRs has been revised to negative from stable and the Long-Term ICRs of “bbb-” have been affirmed for the following holding companies: Colina Holdings Bahamas Limited, FamGuard Corporation Limited, [and] Guardian Holdings Limite,” it added.
AM Best explained further that each insurance holding company’s credit rating profile is characterised by very strong balance sheets, strong operating performances, neutral business profiles, and appropriate enterprise risk management (ERM).
However, the outlook of Guardian Holdings Limited also hinges on the credit profile of its parent, NCBIC. AM Best described the Jamaican operation’s profile as “adequate” with a strong operating performance, neutral business profile and appropriate ERM, as well as a strong balance.
“The revised outlooks to negative reflect AM Best’s concerns regarding global economic conditions negative impact to territories in the Caribbean. Regional territories in the Caribbean are impacted materially by tourism, energy and agricultural factors, which are being impacted in the short term by global conditions,” the review outlined.
It continued: “The driver of the negative outlooks is centered in AM Best’s concerns about volatility in the operating performance metrics of these insurers in the short term. AM Best will continue to monitor the conditions in the Caribbean region and make appropriate rating changes as conditions change.”