AM Best Affirms Ratings Of Colonial Group
The financial strength of Bermuda-based Colonial Group International has been recognized by AM Best rating agency, the independent global credit rating agency.
Colonial’s Financial Strength Rating of ‘A’ was affirmed after Best’s annual review concluded the group maintained ‘excellent ability to meet its ongoing insurance obligations.’
The rating reflects Colonial Group’s balance sheet strength, which Best characterized as ‘strongest’, as well as its assessment of the company’s operating performance, diversified sources of earnings, business profile and risk management.
Best notably removed Colonial from its formal review of Bahamas-based property and casualty operators following the catastrophic impact of Hurricane Dorian in early September.
The agency found that Colonial’s financial exposure to storm damage was within its reinsurance obligations and that the net impact on the organization would be ‘minimal’.
In assessing Colonial’s financial strength, Best also referenced the group’s ‘broad Caribbean footprint’ through its 2018 investment in Beacon Insurance Company of Trinidad & Tobago, which expanded its geographical presence to 12 jurisdictions in the region.
Colonial’s Long Term Issuer Credit Rating of ‘a’ was also affirmed by Best, which again cited the groups ‘excellent ability’ to meet its ongoing senior financial obligations.
The agency concluded that the outlook for Colonial was ‘stable’.
Colonial Chief Executive Officer Naz Farrow said she was pleased with Best’s positive ratings.
‘They reconfirm that we are a solid company, strongly positioned to withstand the challenges our policyholders face, especially extreme weather challenges that are happening with more frequency.
‘We take pride in promptly providing them with the protection and support they need. Our strong balance sheet is key to meeting those needs and A.M. Best has once again recognized that.’
Colonial subsidiaries include Colonial Life Assurance Company Ltd. and Colonial Insurance Company Ltd. in Bermuda; Colonial Medical Insurance Ltd. in Bermuda and Barbados, British Caymanian Insurance Company Ltd. in Cayman, Atlantic Medical Insurance Ltd and Security and General Insurance Company Ltd. in The Bahamas and Turks and Caicos; and Colonial Insurance [BVI] Ltd. in British Virgin Islands.
