A.M. Best Co. announced that it has assigned an initial financial strength rating of “B++” (Very Good) to Jamaica International Insurance Company Limited (JIIC) of Kingston, Jamaica, with a stable outlook.
“The rating is based on JIIC’s strong capitalization, excellent operating results, liquid investment portfolio and support from its parent company, Grace, Kennedy & Company Limited, one of the most prominent business conglomerates in the region,” said Best. “Offsetting these factors is the current challenging macroeconomic environment in Jamaica and the high expense structure of the company due to elevated reinsurance costs.”
Best noted that the company “has been able to generate capital internally in the last five years due to strong operating results driven by income from its investment portfolio. As a member of the Grace, Kennedy & Company Limited conglomerate, JIIC benefits from the brand recognition and support of its parent.”
It noted, however, that “JIIC will be challenged by the recent deterioration in the Jamaican economy and the geographic concentration of risk on the island. Given the country’s weather-related catastrophic exposure, JIIC depends on reinsurance for earnings and surplus protection. JIIC has in place a comprehensive catastrophe reinsurance program that minimizes its net retention of losses from catastrophic events.”
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