Thursday, October 27, 2016
Wednesday, February 1, 2017
Colina Insurance Ltd, The Bahamas largest life and health insurer, announced the affirmation of its A- (Excellent) Financial Strength Rating and “a-” Long-Term Issuer Credit Rating by AM Best Co insurance rating agency and information source.
AM Best also affirmed the company’s stable outlook, reflecting Colina’s adequate capitalization and operating ratios.
According to credit rating agency, the rating affirmations reflect Colina’s “leading position in the life/health market in The Bahamas; its adequate risk-adjusted capitalization; positive operating results and conservative reserving practices.”
The ratings also consider Colina’s ability to leverage its competitive advantages within The Bahamas.
According to AM Best’s ratings methodology, the “A-”rating is assigned by AM Best only to insurance companies that AM Best believes have an excellent ability to meet their ongoing insurance obligations.
Colina has maintained a rating history of A- (Excellent) since it received its first AM Best rating in 2004.
“Colina enjoys a leading market share in the region in its selected segments,” AM Best said in statement. “Its risk-adjusted capitalization remains adequate relative to its investment and insurance risks. AM Best expects a continuation of a normalized level of aggregate profitability based on 2015 performance measures.”
AM Best also affirmed the “bbb-” Long-Term Issuer Credit Rating for the company’s parent, Colina Holdings Bahamas Ltd (“CHBL”) with a stable outlook, recognizing the company’s normalized earnings profile and demonstrated improving trends.
In the financial year ending 31 December, 2015, CHBL reported continued positive results in key financial indicators, including a $77.5 million growth in its total asset base over 2014. By the second half of 2016, the company continued to build its asset base, further increasing total assets by $18.5 million to $729.4 million, with total equity at $175.8 million at 30 June 2016.
“We are very pleased to have our A- (Excellent) rating affirmed once again,” said CHBL executive vice chairman Emanuel M Alexiou.
“We continue to maintain a conservative operating philosophy, focused on ensuring Colina maintains the long-term financial strength to honour the financial commitments we make to our policyowners every day. Best’s affirmations demonstrate that they have a great deal of confidence in Colina and its financial stability, strategy, and prospects for continued growth.”