Two Bahamian insurance providers have seen their financial strength and creditworthiness reaffirmed by the industry’s main global credit rating agency.

Bermuda-based Coralisle Group, in a statement, said CG Atlantic Medical & Life Insurance and CG Atlantic General Insurance are among its affiliates whose financial strength rating of A (Excellent) was again confirmed by AM Best. The rating agency also upheld their long-term issuer credit ratings of “a” (Excellent), as well as for the group’s other life and health and property and casualty operating subsidiaries.

The outlook for all Coralisle Group credit ratings was ‘stable’. CG is a holding company of Edmund Gibbons Limited, the group’s ultimate parent. “We are pleased and confident about our performance and our position,” said CG’s chief executive, Naz Farrow.

“Our people are motivated, skilled and efficient. Through sound planning, operational consistency and teamwork, the addition of CG United proceeded seamlessly. We are now achieving operational synergies across multiple jurisdictions that enable us to promptly provide our clients with the protection and support they need.”

AM Best, in its statement, said the rating affirmations reflected CG’s balance sheet strength, which it regards “as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management”.

“On a consolidated basis, CG continues to demonstrate the strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by ample liquidity and fungibility of resources across the organisation,” AM Best said.

“The group’s financial leverage declined at year-end 2023 after the debt used to pay off the acquisition of CG United Insurance (CG United) in May 2022 was repaid fully in the second quarter. The group maintains high reinsurance dependence, especially in its property business, due to its exposure in catastrophe-prone areas, but manages this appropriately through a comprehensive reinsurance programme with high-quality reinsurance partners.

“CG’s year-end 2023 results were favourable when compared with 2022 due to a reversal of investment losses along with a full year of CG United premium. Additionally, new business, execution on rate adjustments and high renewal retention rates led to a significant increase in gross premium written in 2023,” AM Best continued.

“Premium growth continued through 2024, and is projected to continue in 2025. Potential for volatility in earnings remains high due to catastrophe exposure and the risk of health reform in its service areas. However, the group was profitable on both an underwriting and net basis in 2023, and through the third quarter of 2024.

“CG maintains its neutral business profile through a strong market position in its core Bermuda market across property and casualty, pension and health businesses. The addition of CG United helped expand its footprint into the southern Caribbean, providing additional premium and geographic diversification, as well as opportunities to cross sell products.”