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 underpinned by its risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which AM Best expects to remain at the strongest level. ICBL has generally produced positive net income driven by the underwriting and marketing expertise derived over its many years of risk and claims management. ICBL has recorded profitable overall results in recent years; however, the company's five-year operating performance metrics places it in the bottom half relative to its rated Caribbean peers. ICBL's business profile assessment reflects the company's geographic and product concentration. 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 agains frequency of events.
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