A.M. Best Affirms Colonial’s Ratings

September 15, 2011

A.M. Best Co. has affirmed the financial strength ratings of A- (Excellent) and issuer credit ratings of “a-” of the life/health and property/casualty operating subsidiaries of Colonial Group International Limited (Colonial Group).

The outlook for all ratings is stable. Colonial Group is a wholly owned intermediate holding company of Edmund Gibbons Limited, the ultimate parent company. All companies are domiciled in Bermuda, unless otherwise specified.

A statement issued said, “The rating affirmations reflect the operating subsidiaries’ adequate risk-based capitalization, the consistent increase in their total consolidated equity and diversified business profiles, with their focus being on life/health and property/casualty markets in Bermuda, the Bahamas, Cayman Islands and the Caribbean.”

“Colonial Group’s life/health subsidiaries have reported favorable underwriting results in their most recent year with the exception of Colonial Life Assurance Company Limited, which reported a small net profit in 2010. Although considerably improved compared to recent years, the company is likely to revert to reporting a net loss for the current year.”

“Colonial Medical Insurance Company Limited and Atlantic Medical Insurance Limited (Bahamas) are regional companies with a continued strong presence in their respective health markets. On a net income and underwriting basis, the life/health subsidiaries’ combined results were higher in 2011 and 2010 from previous years, but top line growth remains a challenge, mostly due to a weak economic environment.”

“Within the property/casualty operations, Colonial Group’s three operating subsidiaries, Colonial Insurance Company Limited, British Caymanian Insurance Company Limited (Cayman Islands) and Security and General Insurance Company Limited (Bahamas), have generally demonstrated good underwriting results, improved operating performance trends and continuing parental support. Furthermore, Colonial Group benefits from these subsidiaries’ reinsurance leverage to manage their property/casualty risks, while growing direct premium revenues in their core markets.”

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  1. Wallstreet-reidstreet says:

    Look out Bermuda Sir David Gibbons and Dr. Gibbons just got richer! They can now throw stupid money into the next election, if it can be bought, is a wrap. Look now for no crumbs they will gobble it all up and all we will be able to do is smell their burps