OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-” of M&C
General Insurance Company Limited (M&C General) (Castries, St. Lucia).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect M&C General’s balance sheet strength, which AM Best
categorizes as very strong, as well as its strong operating performance,
limited business profile and appropriate enterprise risk management
(ERM).
M&C General’s balance sheet strength is underpinned by its risk-adjusted
capitalization being assessed at the strongest level, as measured by
Best’s Capital Adequacy Ratio (BCAR). However, the company is relatively
small with less than USD 10 million in equity, and it relies heavily on
the strength of its reinsurers to manage its catastrophe exposure,
minimize earnings volatility and protect surplus. The ratings benefit
from the company’s operating performance, which has been better than
average year in and year out compared with other companies writing
similar lines of business in the Caribbean. Although the company has a
concentration of risk in property and motor lines of business in St.
Lucia, geographically it is less prone to hurricanes, which tend to take
a more northerly track. Therefore, its operating performance has not
been marred by severe weather events over the past five years.
M&C General operates in a limited, mature market, with little potential
for organic growth. Management is well-established in this market, and
effectively distributes its products through insurance brokers and on a
direct basis. The ERM program has identified underwriting, investment
and operational risks effectively, and focuses also on the regulatory
and legal environment, as well as reserving, marketing and reputational
risks. Moreover, M&C General’s affiliation with its ultimate parent,
Goddard Enterprises Limited, one of the largest Barbados-domiciled
conglomerates, gives the company access to financial and investment
management and information technology.
AM Best anticipates that M&C General will continue to generate favorable
earnings and maintain risk-adjusted capitalization at the strongest
level.
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 Understanding
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 rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Alexander Sarfo
Senior Financial Analyst
+1
908 439 2200, ext. 5779
[email protected]
Charles M. Huber
Director
+1 908 439 2200,
ext. 5122
[email protected]
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
[email protected]
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
[email protected]
