AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Ratings of "bbb+" of the two operating subsidiaries of Nagico Holdings Limited: National General Insurance Corporation (NAGICO) N.V. (St. Maarten) and Nagico Insurance Company Limited (Anguilla). These companies collectively are referred to as NAGICO Group or the group. The outlook of these Credit Ratings (ratings) is stable.
The ratings of NAGICO Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The balance sheet strength assessment reflects the group’s supportive risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also reflects the group’s reliance on its highly rated reinsurer panel to protect shareholder equity against losses from natural catastrophes, given NAGICO Group’s exposure in the Caribbean. Furthermore, AM Best expects the group’s partnership with Peak Reinsurance Company Limited to produce growth opportunities and provide enhanced asset and investment management, in addition to capital support.
The group has generally been profitable in non-cat years, despite five-year average underwriting ratios and return metrics that do not compare favorably with most of the other rated Caribbean property/casualty peers. Earnings in non-cat years have contributed to surplus growth and management remains focused on reducing exposure to hurricanes and natural disasters in its property segment, while increasing business written in non-cat exposed segments.
NAGICO Group produces and distributes its business through select agents, brokers and branch offices in 21 territories in the Caribbean. The group is the dominant insurer in St. Maarten and a leading insurer in several of its markets. However, markets remain highly competitive and economies throughout the Caribbean remain generally weak.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005921/en/
Senior Financial Analyst
+1 908 439 2200, ext. 5676
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5477
+1 908 439 2200, ext. 5644