AM Best Affirms Credit Ratings of Insurance Corporation of Barbados Limited

DECEMBER 04, 2024 03:46 PM (EST)

AM Best Affirms Credit Ratings of Insurance Corporation of Barbados Limited

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FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 04, 2024 03:46 PM (EST)
AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb+" (Good) of Insurance Corporation of Barbados Limited (ICBL) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ICBL's balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

ICBL's balance sheet strength is supported by its risk-adjusted capitalization, which is assessed at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects this measure to remain at the strongest level. While there has been a certain degree of volatility in operating results overall, ICBL generally produces favorable operating results in supporting its capital level. Net earnings have been favorable in four of the past five years mainly driven by investment and fee income that has offset pressure on underwriting results. Property, motor and creditor life business segments drive overall profitability for the organization, while group and individual health and life are currently producing losses. Management cost initiatives are expected to provide the potential for more consistent operating performance over the near term. ICBL's limited business profile assessment reflects the company's business concentration in Barbados. Although, AM Best recognizes ICBL as a market leader in its domestic market.

ICBL is exposed significantly to catastrophe events and potential losses due its geographic concentration of property business. This exposure is managed through the utilization of reinsurance to limit its catastrophe exposure to a manageable level and protect its surplus against potential adverse events. Attaining sufficient reinsurance coverage has been more challenging as reinsurers have increased rates and moderated available capacity in the Caribbean. ICBL has been able to fully place its reinsurance program for the past two years at acceptable terms to support its business. To remain competitive, the company is working toward administrative cost reductions to balance pricing, reinsurance cost and profitability.

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 Performance Assessments, 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.