A.M. Best Upgrades Credit Ratings of Colonial Group International Limited’s Operating Subsidiaries

A.M. Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “a” from “a-” for the life/health (L/H) and property/casualty (P/C) operating subsidiaries of Colonial Group International Limited (referred to as Colonial Group). The outlook of these Credit Ratings (ratings) is stable. Colonial Group is a wholly owned intermediate holding company of Edmund Gibbons Limited, the ultimate parent company. All companies are domiciled in Bermuda, unless otherwise specified. (See below for a detailed listing of the companies.)

The ratings reflect Colonial Group’s 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.

Colonial Group’s balance sheet strength is derived from its long-term operating results, which have resulted in an accumulation of capital that drives its solid risk-adjusted capitalization levels. Colonial Group has a significant dependence on its reinsurance programs; however, these treaties added the necessary protective layers of coverage during the Caribbean’s heavily active 2017 hurricane season. Colonial Group’s earnings are driven primarily by consistently strong underwriting results in its medical business. In addition, the group’s operating performance is indicative of more than adequate risk protection against the catastrophic losses realized last year.

The rating upgrades reflect improved market position and geographic diversification compared with its peers, as the medical products business continues to grow outside the core market of Bermuda. The group’s P/C segment has shown limited growth due to rate compression over the last few years and decreased activity in areas heavily affected by hurricanes in 2017. Management is focused on expanding into the southeastern Caribbean markets, which include Barbados, Trinidad & Tobago, Grenada, St. Lucia, Dominica, St. Kitts & Nevis and St. Vincent & The Grenadines, through its 2018 acquisition of a minority interest in The Beacon Insurance Company Limited of Trinidad and Tobago, pending regulatory approval. While execution and market risks exist, the expansion will complete jurisdiction coverage in 12 markets for Colonial Group, which furthers expands its business profile through geographic diversification.

The FSRs have been upgraded to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” from “a-” with a stable outlook for the following L/H and P/C operating subsidiaries of Colonial Group International Limited:

• Colonial Medical Insurance Company Limited
• Atlantic Medical Insurance Limited (Bahamas)
• Colonial Life Assurance Company Limited
• Colonial Insurance (BVI) Limited (British Virgin Islands)
• Colonial Insurance Company Limited
• Security and General Insurance Company Limited (Bahamas)
• British Caymanian Insurance Company Limited (Cayman Islands)

This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.

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