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Press release content from Business Wire. The AP news staff was not involved in its creation.
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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of Family Guardian Insurance Company Limited and FamGuard Corporation Limited

September 30, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Sep 30, 2021--

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of a- (Excellent) of Family Guardian Insurance Company Limited (Family Guardian). Concurrently, AM Best has affirmed the Long-Term ICR of bbb- (Good) on FamGuard Corporation Limited (FamGuard). Both companies domiciled in Nassau, Bahamas. The outlook of these Credit Ratings (ratings) is negative.

The ratings reflect Family Guardian’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The balance sheet strength assessment reflects risk-adjusted capital at the strongest level, low financial 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 has been declining as a portion of its total investment portfolio, but allocations to mortgage loans remain elevated.

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Family Guardian’s operating performance remains strong, with return on equity levels consistently over 10% and positive net earnings which have supported capital growth. The business profile assessment considers Family Guardian’s good market position 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.

The negative outlooks reflect AM Best’s concern regarding global economic conditions and their negative impact on territories in the Caribbean. Regional territories in the Caribbean are impacted materially by tourism and energy factors, which are being affected in the short term by global conditions. The negative outlooks also reflect AM Best’s concern that these conditions could result in volatility in the operating performance and deterioration in the company’s risk based capitalization of these insurers in the short to intermediate term. AM Best will continue to monitor the conditions in the Bahamas and take appropriate rating actions as conditions change.

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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 use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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/20210930005852/en/

CONTACT: Louis Silvers

Senior Financial Analyst

+1 908 439 2200, ext. 5802

louis.silvers@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comAnthony McSwieney

Senior Financial Analyst

+1 908 439 2200, ext. 5715

anthony.mcswieney@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 09/30/2021 12:58 PM/DISC: 09/30/2021 12:58 PM

http://www.businesswire.com/news/home/20210930005852/en