A.M. Best Affirms Ratings of Bahamas First General Insurance Company Limited

Business Wire

posted: 19 DAYS 8 HOURS AGO

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A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Bahamas First General Insurance Company Limited (BFG). The outlook for both ratings is stable. BFG is the primary holding of its parent company, Bahamas First Holdings Limited (BFH). Both companies are domiciled Nassau, Bahamas.

The ratings are based on BFG’s continued solid capitalization, favorable operating performance and established presence in the Bahamian market. These factors are supported by the company’s conservative catastrophe program, underwriting controls, local market expertise and enhanced risk management.

Historically, BFH has contributed capital to BFG to support growth initiatives and to enhance its capital position. A.M. Best expects that BFH will continue to support BFG with additional capital contributions, allowing BFG to maintain the level of risk-adjusted capitalization necessary for its rating level.

These positive factors are somewhat offset by BFG’s geographic concentration and subsequent exposure to hurricane activity. However, this concern is mitigated by BFG’s strong reinsurance program with prominent reinsurance companies. The program reduces BFG’s net probable maximum loss to a manageable level, but substantially increases operating costs.

Furthermore, BFG faces increased competition from indigenous and outside companies seeking market share.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.