Caribbean Alliance Insurance Co. (CAIC) announced in an Oct. 13 press release that it has received a Financial Strength Rating of "A" for Excellent and the Long-Term Issuer Credit Rating of "A" for Excellent by AM Best.
Both ratings, which is AM Best's strongest, is a reflection of CAIC's appropriate enterprise risk management, neutral business profile and strong operational performance, the release said.
The balance sheet strength is derived from the company’s risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), the press release said. Capital growth has been driven by strong earnings; however, growth was limited in 2020 due to the distribution of a large stockholder dividend. CAIC’s balance sheet strength is supported further by a highly liquid and conservative investment portfolio, and its comprehensive reinsurance program to protect earnings and surplus in the event of a natural catastrophe.
CAIC maintained strong performance during a time where most of its operational territories were shut down due to the pandemic, the release said. CAIC was also able to maintain earnings amid a highly competitive regional market-facing constraints due to economic challenges.
The release states that AM Best is a worldwide credit rating agency, data analytics provider and news publisher.