OLDWICK, N.J. – A.M. Best Co. has assigned an issuer credit rating (ICR) of “bbb” and affirmed the financial strength rating (FSR) of B++ (Good) of Jamaica International Insurance Company Limited (JIIC) (Jamaica). The outlook for both ratings is stable.
The ratings reflect JIIC’s favorable capitalization, profitable operating results and financial flexibility as a result of the support and commitment of its parent, GraceKennedy Limited (GK). GK is one of the leading business conglomerates in the region and is publicly-traded on the Jamaica, Barbados, Trinidad and Tobago and Eastern Caribbean Islands stock exchanges.
Historically, JIIC has reported consistent earnings due to effective underwriting controls and conservative operating strategies. Consequently, the company has been able to significantly enhance its capital position and continue to maintain its strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR).
As an integral member within the GK Group’s financial services, JIIC enjoys strong parental support and commitment as evidenced by past capital contributions and a stated willingness to make additional funds available should the need arise.
Partially offsetting these strengths is JIIC’s lack of geographic diversification, the continuing challenges in the Jamaican macroeconomic environment and the high cost of reinsurance due to JIIC’s dependence on reinsurance for earnings and surplus protection from catastrophic events.
