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A.M. Best Affirms Ratings of M&C General Insurance Company Limited
[October 31, 2014]

A.M. Best Affirms Ratings of M&C General Insurance Company Limited


OLDWICK, N.J. --(Business Wire)--

A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of "bbb+" of M&C General Insurance Company Limited (M&C General) (St Lucia). The outlook for both ratings is stable.

The ratings reflect M&C General's excellent risk-adjusted capitalization, overall earnings in recent years, conservative reinsurance program and local market expertise. In addition, the ratings recognize M&C General's affiliation with its ultimate parent, Goddard Enterprises Limited, one of the largest Barbados-domiciled conglomerates. M&C General has parental support, and this affords the company access to the group's resources, including financial and investment management and information technology.

Solid underwriting results and consistent levels of investment income have led to M&C General's surplus growth in recent years and have enabled the company to maintain very strong risk-adjusted capitalization for its current business profile. The management team at M&C General has extensive knowledge of the domestic market and continues to maintain effective risk management strategies. Furthermore, catastrophe risk is mitigated by M&C General's conservative reinsurance program, which protectsthe company's capital from the frequency and severity of events.



Partially offsetting these strengths are the geographic concentration of M&C General's business in an increasingly competitive domestic market, its reliance on reinsurance as a catastrophe risk mitigation strategy and local regulatory risk. A.M. Best anticipates that the competitive domestic insurance market will continue to pressure the company's earnings and market share.

While M&C General's ratings are stable, factors that could contribute to upward rating movement include continued improvement in underwriting performance and overall profitability and an upgrade in St. Lucia's country risk tier rating. Factors that may lead to negative rating actions include a sustained decline in underwriting profitability, significant deterioration in its risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and a downgrade in St. Lucia's country risk tier rating.


The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

  • Catastrophe Analysis in A.M. Best Ratings
  • Evaluating Country Risk
  • Risk Management and the Rating Process for Insurance Companies
  • Understanding BCAR for Property/Casualty Insurers
  • Understanding Universal BCAR

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.


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