Oct 2015 Financial News

AM Best affirms Guardian Life rating

Oct 12, 2015

NEW JERSEY—AM Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of “a-” of Guardian Life of the Caribbean Ltd (GLOC) and Guardian General Insurance Ltd (GGIL). Concurrently, the rating agency has affirmed the ICR of “bbb-” of Guardian Holdings Ltd (GHL), a publicly traded holding company and the ultimate parent of GLOC and GGIL. The outlook for all ratings is stable. GHL is listed on the T&T Stock Exchange.

The affirmation of the ratings of GLOC and GGIL reflect GHL’s fairly stable leverage position, consolidated balance sheet strength and premium growth over the past several years.

The consistent profitability of GLOC and GGIL, which are core insurance subsidiaries of GHL, enhances the overall strength of GHL’s balance sheet and debt servicing capabilities. Nevertheless, AM Best notes that the outstanding level of financial leverage at GHL remains somewhat elevated relative to total capitalisation.

Moreover, GHL’s exposure to Jamaica through its life and non-life operations remains an area of concern.

The ratings of GLOC acknowledge its strategic position within the GHL group, strong competitive position in the T&T markets, consistently positive operating results from its life and pension and health insurance lines and its adequate level of risk-adjusted capitalisation.

Offsetting these positive rating factors are GLOC’s moderately increased insurance benefits and claims expenses, the impact of continuing volatility in the local, regional and global equity markets and the competitive and mature nature of the T&T insurance marketplace. (BUSINESS WIRE)

Source:
Trinidad Guardian
Monday October 12, 2015

http://www.guardian.co.tt/business/2015-10-12/am-best-affirms-guardian-life-rating