AM Best Affirms Credit Ratings of Insurance Corporation of Barbados Limited

AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Insurance Corporation of Barbados Limited (ICBL) (Barbados). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ICBL’s balance sheet strength, which AM Best assesses as strongest as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

ICBL’s balance sheet strength is supported by its risk-adjusted capitalization, which is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). AM Best expects this measure to remain at the strongest level. ICBL has produced positive net income, driven by investment and fee income that has offset inconsistent underwriting income. However, a hardening market in Barbados and a series of management cost initiatives provide potential for more consistently profitable underwriting over the near term. ICBL’s business profile assessment reflects the company’s geographic and product concentration in Barbados. The business profile assessment also recognizes ICBL’s market position as one of the leading property/casualty insurers in its domestic market.

ICBL, like other regional insurers, has significant exposure to catastrophe losses. The company manages this risk through the utilization of reinsurance to limit its catastrophe exposure to a manageable level and protect its surplus against frequency of events. Maintaining sufficient reinsurance coverage has become more challenging in the region as reinsurers have increased rates and reduced available capacity. However, ICBL was able to acquire sufficient coverage for 2023 at acceptable terms to support their near-term business plans. Furthermore, ICBL may benefit from general improvement of pricing discipline in Barbados’ property segment brought on by the hardening reinsurance market.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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