GraceKennedy

A.M. Best Co. has affirmed the financial strength rating of 'B++' (Good) and issuer credit rating of "bbb" of Jamaica International Insurance Company Limited (JIIC) with stable outlooks. Best said the rating actions reflect JIIC's favorable capitalization, historical profitability and financial flexibility as a result of the support and commitment of its parent, GraceKennedy Limited (GK Group), one of the leading business conglomerates in the region. GK Group is publicly traded on the Jamaica, Trinidad, Barbados and Eastern Caribbean stock exchanges. 

Historically, JIIC has reported consistent earnings as a result of its conservative operating strategies and steady investment income. Consequently, the company has been able to consistently enhance its capital position, and it continues to maintain adequate risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR).  

As an integral member within the GK Group's financial services, JIIC enjoys strong parental support and commitment as evidenced by past capital contributions and its stated willingness to make additional funds available should the need arise. However, Best noted that "JIIC's lack of geographic diversification, the continuing challenges in the Jamaican macroeconomic environment and the high cost of reinsurance due to JIIC's dependence on reinsurance for earnings and surplus protection from catastrophic events" should be considered as offsetting factors.
 

Posted: June 3, 2009