Artificial Intelligence | News | Insights | AiThority
[bsfp-cryptocurrency style=”widget-18″ align=”marquee” columns=”6″ coins=”selected” coins-count=”6″ coins-selected=”BTC,ETH,XRP,LTC,EOS,ADA,XLM,NEO,LTC,EOS,XEM,DASH,USDT,BNB,QTUM,XVG,ONT,ZEC,STEEM” currency=”USD” title=”Cryptocurrency Widget” show_title=”0″ icon=”” scheme=”light” bs-show-desktop=”1″ bs-show-tablet=”1″ bs-show-phone=”1″ custom-css-class=”” custom-id=”” css=”.vc_custom_1523079266073{margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”]

AM Best Assigns Credit Ratings to Selecta Insurance and Reinsurance Company (Caribbean) Ltd.

AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to Selecta Insurance and Reinsurance Company (Caribbean) Ltd. (Selecta) (Saint Kitts and Nevis). The outlook assigned to these Credit Ratings (ratings) is stable.

Latest Aithority Insights: Tokio Marine Vietnam Powers Customer Experience with OpenText

The ratings reflect Selecta’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.

Selecta’s balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), following a capital contribution of USD 50.0 million in 2021. AM Best expects Selecta’s prospective BCAR scores to remain comfortably at the strongest level, supported by full earnings retention and controlled growth in line with its business plan. The company’s balance sheet strength assessment also considers the company’s highly liquid investment portfolio and moderate dependence on retrocession. Selecta’s counterparty credit risk is mitigated partially by the use of a panel of international reinsurers of high credit quality. Offsetting factors include the company’s exposure to the high economic and moderate financial system and political risk in Saint Kitts and Nevis.

Related Posts
1 of 30,240

Browse The Complete News About Aithority: BigID Launches Industry-First Customizable Named Entity Recognition Models

Selecta has a track record of adequate operating performance, as demonstrated by a five-year (2016–2020) weighted average combined ratio of 96.8%, as calculated by AM Best. Historically, underwriting results have benefited from low loss ratios, supported by Selecta’s stringent underwriting criteria. Prospective technical results are subject to potential volatility due to an evolving underwriting portfolio, in terms of lines of business and geographies, as the company executes its business plan. Selecta’s net investment returns contribute positively to its operating profitability, but are largely constrained by the low interest rate environment.

Selecta is a specialist facultative reinsurer, which underwrites risks in multiple territories and lines of business. A material portion of the company’s premiums is derived from an affiliated group, Sun Group MGA, which consists of several managing general agents. Given its relatively small scale, the company does not have an established profile in the international markets in which it operates. AM Best expects Selecta to grow its portfolio gradually in line with its business plan, supported by increased underwriting capacity following the capital injection in 2021 and by management’s experience.

Read More About Aithority News New Fiserv Core Platform Enhancements Tackle Key Client Challenges

 [To share your insights with us, please write to sghosh@martechseries.com]

Comments are closed.