Ratings outlook remains ‘stable’
Consolidated Balance Sheet strength assessed as ‘strongest’
NASSAU, June 25, 2021 – Bahamas First Holdings Limited is pleased to announce that global credit rating agency AM 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.
AM Best’s ratings are based on a detailed analysis of the Group’s consolidated balance sheet strength (which AM Best categorizes as “strongest”), as well as the Group’s operating performance, business profile and enterprise risk management. In its 2021 review, AM Best described the Group’s operating performance as “favorable despite an economic shutdown in the Bahamas and Cayman Islands from the COVID-19 pandemic.” AM Best also highlighted the Group’s sound risk-adjusted capitalization and sustained “history of solid earnings supported by underwriting gains and investment income” which, it identifies, as resulting in the Group’s solid profitability metrics, including its five-year average return metrics.
“The affirmation of our A- rating and stable outlook is an important recognition of our consistent financial performance even during these uncertain economic times,” said Patrick G. Ward, Group President and Chief Executive Officer of Bahamas First Holdings. “AM Best’s continued positive assessment of our financial strength attests that the Bahamas First Group is well-capitalized with a promising outlook for growth and success well into the future, and gives policyowners and shareholders the assurance that we will continue to be here for them to deliver on the promises we’ve made.”
The 2021 report also highlights the Group’s “leading market positions and operations in The Bahamas and Cayman Islands” and product and geographic diversification, which have helped to stabilize earnings through market cycles and reduce the impact of catastrophic events. AM Best concluded that it “anticipates that the Group will continue to produce favorable earnings in non-catastrophe years, and that its risk management capabilities and comprehensive reinsurance program will continue to keep its balance sheet strength at the strongest level.”
For more information, view the AM Best press release here.
