Insurance rating agency AM Best has affirmed the financial strength rating of A-minus (Excellent) for Grand Cayman-based British Caymanian Insurance.
The agency said the rating reflected the company's strong market presence in the Cayman Islands as a provider of general, health and life insurance, along with group pensions and employee benefits.
The rating also reflected the company's historically profitable underwriting results, conservative underwriting leverage and strong liquidity position.
Offsetting factors were competitive-pricing pressures in the company's motor business and rising reinsurance costs, which will challenge further profitability.
Also, the company's overall profitability has been tempered because investment yields on its invested asset base have consistently generated poor returns.
British Caymanian Insurance's products are distributed directly and through brokers across the Cayman Islands. It writes business only in the Cayman Islands and has maintained a presence in the islands since its incorporation in December 1984.
