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A.M. Best affirms ratings of Colina Insurance Ltd

A.M. Best Co has affirmed the financial strength rating of "A-" (excellent) and issuer credit rating of "a-" of Colina Insurance Ltd (Colina) Nassau, The Bahamas. 

MarketWatch - Business Wire
Friday, May 11, 2012
Friday, May 11, 2012

OLDWICK, N.J., May 10, 2012 (BUSINESS WIRE) — A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Colina Insurance Limited (Colina) (Nassau, Bahamas). Colina is a wholly owned subsidiary of its publicly traded parent, Colina Holdings Bahamas Limited (CHBL) [BISX: CHL], which is majority owned by AF Holdings Ltd. (AFH). Concurrently, A.M. Best assigned an issuer credit rating of “bbb-” to CHBL. The outlook for all ratings is negative.

The rating affirmations for Colina reflect its leading position in the life/health market in The Bahamas, good risk-adjusted capitalization, profitable operations, albeit reduced from earlier levels, and conservative reserving practices. As a life/health market leader, Colina continues to leverage its competitive advantages by expanding within the islands of The Bahamas.

The maintenance of the negative outlook reflects A.M. Best’s concerns regarding the risks associated with Colina’s high concentration in real estate investments relative to the total equity of the company and the continued delinquencies in its mortgage loan portfolio that are attributable to the current weak economic environment in The Bahamas. While the company’s earnings performance remains positive, the depressed economic environment also has had an effect on its core life/health insurance lines.

Key rating factors for Colina returning to a stable outlook include improvement in its operating results, decreases in delinquency rates on its mortgage loan portfolio, continued growth and profitability in its core business lines and an overall improvement in the Bahamian economy. Key rating factors that may result in a negative rating action for Colina include further deterioration of operating results, continued weakness in its mortgage loan portfolio, further near-term reductions in interest rates and an overall deterioration of the Bahamian economic environment.

This is an excerpt from MarketWatch - Business Wire as it appeared on May 11, 2012. For updates or to read the current version of this post in its entirety, please click here.

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ZNS news broadcast network reported this week that the international election observers from the Organization Of American States said that they were satisfied that the 2012 Bahamian elections were free and fair. Watch the news report here.

Eight Cabinet Ministers of the new Progressive Liberal Party government took the Oath of Office May 10 at Government House. Pictured: (Front row from left) Obediah Wilchcombe, Minister of Tourism; Dr. Bernard Nottage, Minister of National Security; Perry Christie, Prime Minister; Sir Arthur Foulkes; Philip Davis, Deputy Prime Minister, Minister of Works and Urban Development; and Senator Allyson Maynard Gibson, Attorney General and Minister of Legal Affairs. (Back row from left) Damian Gomez, Minister of State, Legal Affairs; Jerome Fitzgerald, Minister of Education Science and Technology; Keith Bell, Minister of State in the Ministry of National Security; Ryan Pinder, Minister of Financial Services; and Michael Halkitis, Minister of State in the Ministry of Finance. (BIS Photo/Patrick Hanna)

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