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OLDWICK, NJ–(BUSINESS WIRE)–
AM Best was removed from review with development implications and affirmed Financial Strength Rating (FSR) of A (Excellent) and Issuer Long-Term Credit Ratings (Long-Term ICR) of “a” (Excellent) for Life/Health (L/H) and P&C (P/C) operating subsidiaries of Coralisle Group Ltd. (Coralisle Group). The outlook attributed to these Credit Ratings (ratings) is stable. (See below for a list of companies.) Coralisle Group is an intermediate holding company wholly owned by Edmund Gibbons Limited, the ultimate parent company. At the same time, AM Best was removed from the review with developing implications and affirmed the FSR of A- (Excellent) and the long-term ICR of “a-” (Excellent) of Massy United Insurance Ltd. (Massy United) (Barbados). The outlook attributed to these ratings is positive.
The rating actions on Coralisle Group and Massy United are driven by Coralisle Group’s completion of the acquisition of Massy United, which closed on May 4, 2022. The acquired business is expected to add a broader geographic footprint in 14 jurisdictions additional P/C offerings, as well as cross-sell opportunities for complementary health products as its integration plan is executed over time. The additional activity adds scale to the Coralisle Group’s already growing property business, and synergies are expected to be realized across the income and expense components of the combined income statement. With the addition of Massy United, which operates in 20 Caribbean territories, Coralisle Group now has a broad presence in the Caribbean, including the Bahamas, Turks and Caicos Islands, British Virgin Islands and Cayman Islands and Barbados. , with expansion to Anguilla, Antigua and Barbuda, Montserrat, Dominica, Saint Lucia, Saint Vincent, Saint Martin, Grenada, Trinidad and Tobago, Guyana, Curaçao, Aruba, Jamaica and Belize.
The rating affirmations reflect the strength of the Coralisle Group’s balance sheet, which AM Best assesses as the strongest, as well as its adequate operating performance, neutral business profile and appropriate management of business risks. The deal included a debt financing agreement that is expected to increase balance sheet leverage over a narrow time continuum, with the option to repay it in one year. AM Best’s valuation takes into account the short tail of its leverage on the balance sheet and considers the highest level of risk-adjusted capital of the Coralisle Group, as measured by the capital adequacy ratio (BCAR ) from Best. The addition of Massy United is part of the Coralisle Group’s strategy to balance its healthcare operations with its P/C business in many Caribbean jurisdictions. The opportunity to take advantage of the additional scale should benefit its long-term operating results and its ability to increase its premium in the health insurance and healthcare markets. As with any merger of operations, AM Best will monitor the progress of these efforts over the next 12 to 18 months.
Massy United’s ratings affirmations reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its adequate operating performance, neutral business profile and appropriate management of business risks. Although no facelift is applied at the moment, Massy United expects to achieve synergies from being part of the Coralisle group during and through full integration with the organization, which can lead to improved ratings over time. Coralisle Group will also embark on the renaming of Massy United to CG United.
AM Best withdrew from review with development implications and affirmed FSR of A (Excellent) and long-term ICR of “a” (Excellent), each with an assigned outlook of Stable, for the following subsidiaries of Coralisle Group Ltd. :
Coralisle Insurance (BVI) Ltd.
British Caymanian Insurance Company Limited
Coralisle Insurance Company Ltd.
Coralisle Life Insurance Company Ltd.
Coralisle Medical Insurance Company Ltd.
CG Atlantic Medical & Life Insurance Ltd.
CG Atlantic General Insurance Ltd.
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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.
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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best