OLDWICK, NJ–(BUSINESS WIRE)–AM Best assigned a financial strength rating of B++ (good) and a long-term credit rating of “bbb” (good) to British Caribbean Insurance Company Limited (BCIC) (Jamaica). The outlook attributed to these Credit Ratings (ratings) is stable.
The ratings reflect BCIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
BCIC is a Jamaica-domiciled P&C insurer that has been in business for approximately 60 years. The company generates the majority of its business from its home in Jamaica, while also operating in the Turks and Caicos Islands and Barbados. BCIC offers a range of insurance products through its branches and agents, including commercial and residential property insurance as well as automobile coverage.
BCIC’s balance sheet strength assessment is underpinned by its very strong risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), partially offset by a heavy reliance on reinsurance. towards its property insurance portfolio to protect surplus and profits in the event of a disaster. . The balance sheet strength rating also reflects the company’s relatively liquid investment portfolio of short-term Jamaican government repurchase agreements, cash and cash equivalents, and fixed income securities. The company has been able to generate organic growth from surpluses, mostly from overall earnings and despite paying regular dividends.
BCIC has a proven track record of strong underwriting and overall operating results. Overall earnings were boosted by favorable underwriting performance, as evidenced by the company’s combined ratios over the previous five- and ten-year periods, supported by a weak expense ratio. Investment income has consistently contributed to the company’s strong operating results. Performance metrics have been strong and rank BCIC favorably against its Caribbean peers. The company’s operating performance benefited from BCIC’s appropriate enterprise risk management framework, comprehensive reinsurance program and prudent underwriting guidelines.
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