Nov 2016 Financial News

Guardian Life ratings affirmed

Nov 23, 2016

AM Best has affirmed the financial strength rating (FSR) of A- (Excellent) and the long-term issuer credit ratings (Long-Term ICR) of “a-” of Guardian Life of the Caribbean Limited (GLOC).

The rating agency has also affirmed the long-term ICR of “bbb-” of Guardian Holdings Limited (GHL), a publicly traded holding company and the ultimate parent of GLOC.

The outlook of these credit ratings is stable. GHL is listed on the T&T stock exchange.

The affirmation of GLOC’s ratings reflect GHL’s fairly stable leverage position, consolidated balance sheet strength and premium growth over the past several years. The consistent profitability of GLOC, which is GHL’s core life insurance subsidiary, enhances GHL’s overall balance sheet strength and debt servicing capabilities.

Nevertheless, AM Best notes that the outstanding level of financial leverage at GHL remains slightly 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, its adequate level of risk-adjusted capitalization and diversified business profile.

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 TT&T insurance marketplace.

Source:
Trinidad Guardian
Wednesday November 23, 2016

http://www.guardian.co.tt/business/2016-11-23/guardian-life-ratings-affirmed