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AM Best Affirms Credit Ratings of RF&G Insurance Company Limited

November 27, 2019 GMT


AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of RF&G Insurance Company Limited (RF&G) (Belize). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect RF&G’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

RF&G is the leading property/casualty insurer in Belize, with over a 50% market share of this segment. The company is wholly owned by its holding company, G.A. Roe & Sons Limited (ROE), which operates as a finance, management and investment company. RF&G was established in Belize in 1964, and the insurance operation was called Horncastle (British Honduras) Ltd. In 2005, ROE acquired Regent Insurance and merged the operations, resulting in a 2008 name change to RF&G Insurance. RF&G’s business portfolio as of year-end 2018 was composed of fire (57%), motor (22%), casualty (17%), marine (2%), and aviation, bonds and title (approximately 2%).

AM Best considers RF&G’s balance sheet to be very strong; risk-adjusted capitalization reflects the company’s conservative risk appetite supported by an adequately set reinsurance program. Nevertheless, the volume of its capital, gross exposure to catastrophic risk and reinsurance dependence limits AM Best’s view of the company’s balance sheet strength. Additionally, AM Best considers ERM to be appropriate given its comprehensive and appropriate risk framework, and the low complexity of its operations.

AM Best considers the company’s operating performance as of December 2018 to be adequate, with improving loss ratios due to successful adjustments in underwriting and due to a normalization of the loss ratio in comparison with previous years when weather-related claims under the fire account caused this indicator to deteriorate. The company also experienced better performance as of June 2019 in general, specifically in its motor segment, generating positive net results. Despite RF&G being able to grow and remain as a market leader, Belize’s scarce growth opportunities limit the company’s ability to improve its business profile and operating performance. The management team has mitigated this factor during the past few years by focusing on underwriting quality, rendering AM Best’s view of the business profile to neutral.

Positive rating actions could take place in the intermediate term if RF&G maintains its risk-adjusted capitalization while further mitigating the impact to its capital base arising from catastrophic exposures. Negative rating actions could take place if the company presents lower risk-adjusted capitalization derived from volatility in its net results or from capital outflows.

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: Elí Sánchez

Associate Director

+52 55 1102 2720, ext. 122

eli.sanchez@ambest.comAlfonso Novelo

Senior Director, Analytics

+52 55 1102 2720, ext. 107

alfonso.novelo@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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PUB: 11/27/2019 12:00 PM/DISC: 11/27/2019 12:01 PM