A.M. Best Company
12/02/2021 | Press release | Distributed by Public on 12/02/2021 10:09
AM Best Affirms Credit Ratings of East Caribbean Reinsurance Company Limited
DECEMBER 02, 2021 11:03 AM (EST)
AM Best Affirms Credit Ratings of East Caribbean Reinsurance Company Limited
CONTACTS:
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Ricardo Longchallon Senior Financial Analyst +1 908 439 2200, ext. 5676 [email protected]
Sharon Marks |
Christopher Sharkey Manager, Public Relations +1 908 439 2200, ext. 5159 [email protected]
Jim Peavy |
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 02, 2021 11:03 AM (EST)
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of "bbb-" (Good) of East Caribbean Reinsurance Company Limited (ECRC) (Anguilla). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect ECRC's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
ECRC's balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). However, the company is relatively small with less than USD 10 million in equity, and consequently, relies heavily on retrocession to manage catastrophe exposure, minimize earnings volatility and protect surplus. Potential exposure is reduced to a manageable level by a conservative program placed with a high quality panel of reinsurers.
ECRC continues to provide reinsurance solutions to the St. Kitts-Nevis-Anguilla Trading and Development Company Limited, the majority owner, and increasingly to other insurance companies operating in the Organization of Eastern Caribbean States. ECRC's focus is to enhance its operating performance and overall earnings by achieving growth in selected classes of business within existing treaties without increasing its net retained risk. However, while ECRC has established relationships with key participants in its target markets, soft market conditions persist for the business in which the company plans to participate. Furthermore, domestic and regional markets face continuing uncertainties and weakened economic conditions as a result of a decrease in tourism and struggling commodity markets.
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 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.