A.M. Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” from “bbb+” of M&C General Insurance Company Limited (M&C General) (Castries, St. Lucia).
The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect M&C General’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect continuation of surplus growth in recent years, which is attributable to its favorable underwriting results and consistent levels of investment income.
In addition, the ratings recognize M&C General’s affiliation with its ultimate parent, Goddard Enterprises Limited, one of the largest Barbados-domiciled conglomerates.
M&C General benefits from access to the group’s resources, including financial and investment management and information technology.
M&C General’s balance sheet strength is underpinned by its risk-adjusted capitalization being assessed at the strongest level, consistent positive operating earnings and comprehensive reinsurance program, as well as an ERM program that identifies and effectively manages its underwriting, investment and operational risk.
M&C General’s management team has extensive knowledge of the St. Lucia insurance market and continues to maintain effective risk management strategies.
Furthermore, catastrophe risk is mitigated by M&C General’s conservative reinsurance program, which protects the company’s capital from the frequency and severity of events.
Partially offsetting these positive rating strengths are the geographic concentration of M&C General’s business in an increasingly competitive domestic market, its strong reliance on reinsurance as a catastrophe risk mitigation strategy and local regulatory risk.
Despite these concerns, A.M. Best anticipates that M&C General will continue to generate favorable earnings and maintain risk-adjusted capitalization at the strongest level. (M&C)