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AM Best Affirms Credit Ratings of M&C General Insurance Company LimitedAM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" of M&C General Insurance Company Limited (M&C General) (Castries, St. Lucia). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect M&C General's balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). M&C General's balance sheet strength is underpinned by its risk-adjusted capitalization being assessed at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). However, the company is relatively small with less than USD 10 million in equity, and it relies heavily on the strength of its reinsurers to manage its catastrophe exposure, minimize earnings volatility and protect surplus. The ratings benefit from the company's operating performance, which has been better than average year in and year out compared with other companies writing similar lines of business in the Caribbean. Although the company has a concentration of risk in property and motor lines of business in St. Lucia, geographically it is less prone to hurricanes, which tend to take a more northerly track. Therefore, its operating performance has not been marred by severe weather events over the past five years. M&C General operates in a limited, mature market, with little potential for organic growth. Management is well-established in this market, and effectively distributes its products through insurance brokers and on a direct basis. The ERM proram has identified underwriting, investment and operational risks effectively, and focuses also on the regulatory and legal environment, as well as reserving, marketing and reputational risks. Moreover, M&C General's affiliation with its ultimate parent, Goddard Enterprises Limited, one of the largest Barbados-domiciled conglomerates, gives the company access to financial and investment management and information technology. AM Best anticipates that M&C General will continue to generate favorable earnings and maintain risk-adjusted capitalization at the strongest level. 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 Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases. AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information. Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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