AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Colina Insurance Limited and Colina Holdings Bahamas Limited
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 26, 2019--
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Colina Insurance Limited (Colina). Concurrently, AM Best has removed from under review with developing implications and affirmed the Long-Term ICR of “bbb-” of Colina Holdings Bahamas Limited (CHBL) [BISX: CHL]. Both companies are domiciled in Nassau, Bahamas. Colina is a wholly owned subsidiary of its publicly traded parent, CHBL, which in turn is majority owned by AF Holdings Ltd. (AFH). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Colina’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
These rating actions follow the company’s comprehensive assessments of the financial impact to Colina following Hurricane Dorian in August. Immediately following the storm, there was disruption to the company’s distribution systems in the affected islands of Grand Bahama and Abaco. The company also experienced a number of claims attributable to the hurricane, as well as a small increase in policy lapses from policyholders resident in the affected islands; however, the overall financial impact was limited. The storm’s most severe devastation occurred in the northern islands of Abaco and Grand Bahama, where less than 20 percent of the company’s policyholders are located. The island of New Providence, where most of the country’s population and businesses are located, was largely spared.
The balance sheet strength assessment reflects the strongest level of risk-adjusted capital, the absence of leverage and good liquidity, which is partly offset by the company’s limited investment options and high concentration of sovereign debt holdings. The company’s mortgage loan portfolio sustained very limited impact due to the low number of loans in the hardest hit areas and property insurance coverage requirements. Operating performance remains strong with minimal impact to operating earnings resulting from the storm. AM Best expects consistent positive net earnings to continue supporting capital growth in the near term. The business profile assessment considers Colina’s position as a market leader in the Bahamas and creditworthy product offerings offset by its geographic concentration in the Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.
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 credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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CONTACT: Richard Francis
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KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 11/26/2019 12:24 PM/DISC: 11/26/2019 12:24 PM