NASSAU, August 6, 2020 – Bahamas First Holdings Limited is pleased to announce that global insurance rating agency A.M. Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of its property/casualty operating subsidiaries Bahamas First General Insurance Company Limited (BFG) and Cayman First Insurance Company Limited (CFI). The outlook of these ratings is stable.
“We are very proud to celebrate our 21st consecutive year as an ‘A-’ rated entity,” said Patrick Ward, Group President and Chief Executive Officer of Bahamas First Holdings. “A.M. Best’s continued positive assessment of our companies’ financial strength reflects our consistent and sound financial performance and will continue to add to the confidence that our policyholders, agents, associates and partners in The Bahamas and the Cayman Islands have in the Bahamas First Group.”
According to the A.M. Best report, the ratings reflect the Group’s consolidated balance sheet strength, which A.M. Best categorizes as “strongest”, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
“Generally, the company has experienced surplus growth from overall earnings, despite highly competitive markets and difficult economic conditions,” the report concluded. “The Group has a history of solid earnings supported by underwriting gains and investment income. Profitability metrics remain strong as evidenced by solid five-year averages, with the health unit of CFI continuing to be a significant contributor in all years.”
The rating agency added, “The Group maintains leading market positions and operations in The Bahamas and Cayman Islands, and benefits from product and geographic diversification, which has helped to stabilize earnings through market cycles and reduce the impact of catastrophic events. A.M. Best anticipates that the Group will continue to produce favorable earnings in non-catastrophic years, and that its risk management capabilities and comprehensive reinsurance program will continue to keep the Group’s balance sheet at the strongest level.”
