AM Best Affirms Credit Ratings of Colina Insurance Limited and Colina Holdings Bahamas Limited

AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of Colina Insurance Limited (Colina). Concurrently, AM Best has affirmed the Long-Term ICR of “bb+” (Fair) of Colina Holdings Bahamas Limited (CHBL). Both companies are domiciled in Nassau, Bahamas. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Colina’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Colina has limited investment options resulting in a high concentration of sovereign debt holdings. Due to last year’s downgrades of the Bahamas’ sovereign ratings, Colina’s balance sheet strength assessment reflects a low level of risk-adjusted capital, as measured by Best’s Capital Adequacy Ratio (BCAR). This is offset by low financial leverage levels, good liquidity and healthy regulatory and absolute capital levels. The company’s operating performance continues to be assessed as strong, with consistently positive operating earnings and minimal impact to operating earnings resulting from events (e.g., COVID-19, Hurricane Dorian, downgrade of Bahamian debt) in recent years.

Colina’s business profile assessment is bolstered by its position as a market leader in the Bahamas and its low product risk liability offerings, but these are offset by its geographic concentration in the Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.

Concerns remain regarding global economic conditions and their negative impact on the Bahamas. AM Best will continue to monitor the economic conditions in the Bahamas and take appropriate rating actions as they change.

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

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