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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Removes From Under Review With Negative Implications, Downgrades Credit Ratings of M&C General Insurance Company Limited

AM Best has removed from under review with negative implications and downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb” (Good) from “a-” (Excellent) of M&C General Insurance Company Limited (M&C General) (St. Lucia). The outlooks assigned to these Credit Ratings (ratings) is stable.

The ratings reflect M&C General’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The rating downgrades reflect the implications of being acquired by RF&G Insurance Company Limited (RF&G) (Belize), which has a limited absolute capital base and is domiciled in Belize, which has restrictive currency controls.

M&C General has the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). While the BCAR remains at the strongest level, it has declined significantly due to reduced capital upon the sale of M&C General to RF&G. The company has a high dependence on reinsurance to manage capital exposure to catastrophic events, as is typical of Caribbean insurers. M&C General holds appropriate protection from catastrophic events with high-quality reinsurers. Absolute capital at the company is limited and was approximately XCD 14.2 million (USD 5.3 million) at the end of 2023. Capital is expected to grow organically through retained earnings offset by moderate dividends. M&C General’s investment portfolio is concentrated in St. Vincent and St. Lucia government bonds.

M&C General has reported strong operating performance, attributed to favorable underwriting results, strong fee income and consistent levels of investment income. The company has produced solid operating results in each year of the most recent five-year period through fiscal year-end 2023. M&C General has maintained strict underwriting discipline with a focus on profitability over growth.

M&C General has a limited business profile. The business in concentrated in property and auto segments with geographic concentration in St. Lucia and St. Vincent in the Eastern Caribbean. While M&C General has a well-established local market presence, it operates in mature markets that are limited in size and potential for organic growth.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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