Rating agency Caricris has reaffirmed “good creditworthiness” ratings to the Colonial Fire and General Insurance Company Ltd (Colfire).
Caricris said these ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean is good.
Caricris also recommended a reaffirmation of the assigned financial strength rating of CariA, which indicated that the company’s ability to meet its ongoing insurance obligations is good.
Caricris has also maintained a stable outlook on the ratings.
According to the rating agency, the stable outlook is based on its expectation Colfire will continue to be profitable and remain adequately capitalised over the next 12 to 15 months barring any major systemic events.
Additionally, Caricris added, the company is expected to maintain its strong market position and good credit quality of financial assets over the next 12 to 15 months
“The ratings of Colfire continue to reflect the company’s strong market position supported by a robust distribution network and adequate capitalisation levels notwithstanding its high risk retention,” Caricris further explained.
It added the rating are further supported by the company’s continued underwriting practices leading to healthy financial performance, good asset quality, adequate information systems and risk management policies.
These rating strengths are however, tempered by the prevailing economic conditions, constrained access to foreign exchange and increasing reinsurance rates which could negatively impact Colfire’s operations and profitability, Caricris added.