Market Overview

A.M. Best Affirms Credit Ratings of Sagicor General Insurance Inc.


A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of "a-" of Sagicor
General Insurance Inc.
(Sagicor General) (Bridgetown, Barbados). The
outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect Sagicor General's balance sheet strength, which A.M.
Best categorizes as strongest, as well as its adequate operating
performance, neutral business profile and appropriate enterprise risk

These factors are supported by Sagicor's risk-adjusted capitalization,
as measured by Best's Capital Adequacy Ratio (BCAR) and the financial
flexibility of being an indirect subsidiary of Sagicor Financial
Corporation Limited
(SFC) (Bermuda), a publicly traded holding
company that is listed on the Barbados, Trinidad and London stock
exchanges. SFC has a long market history through its operating
subsidiaries, very strong brand recognition and diversified geographical
reach throughout the Caribbean region. Sagicor General also benefits
from its competitive position in the markets it serves and the
reinsurance support provided by its long-standing reinsurance partners.

Sagicor General is one of the leading property and auto insurers in
Barbados. The company also maintains a significant presence in Trinidad
and Tobago. Aside from the adversity encountered from Hurricane Maria in
2017, Sagicor General has generally produced positive overall operating
results, which are derived from its significant ceding commissions and
underwriting gains from its private passenger auto book.

Additional rating considerations include difficult local macroeconomic
conditions and the increasingly competitive regional insurance
environment throughout the Caribbean. In addition, the company has
significant loss exposure in the region to catastrophic weather events,
which is mitigated materially by a comprehensive reinsurance program
backed by quality reinsurers. Prospectively, earnings remain subject to
a mature, highly competitive regional market and catastrophe losses,
given its exposure.

The stable rating outlooks reflects A.M. Best's expectation that the
company's rating fundamentals will remain unchanged in the intermediate
term, including balance sheet strength remaining in the strongest
category and overall operating performance commensurate with similarly
rated peers.

This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's
Rating Activity
web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view
Best's Credit Ratings
. For information on the proper media
use of Best's Credit Ratings and A.M. Best press releases, please view
for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating
Action Press Releases

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