AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of RF&G Insurance Company Limited (RF&G) (Belize). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect RF&G’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

RF&G is the leading property/casualty insurer in Belize, with 50% of the market share. The company is wholly owned by its holding company, G.A. Roe & Sons Limited, which operates as a finance, management and investment company. The ratings of RF&G were initially placed under review with negative implications on September 22, 2023, following the company’s 100% acquisition of M&C General Insurance Company Limited (M&CGI) from Minvielle & Chastanet Limited, a wholly owned subsidiary of Goddard Enterprises Limited. With this acquisition, RF&G aimed to expand its reach in the Caribbean market and enhance its overall business. The funding for this transaction has been provided and analyzed without any significant effect on RF&G. AM Best kept the under review status based on the uncertainty about the post-transaction consolidated balance sheet strength. This information, which has been received and analyzed on the current operating performance of the consolidated entity has rendered a very strong balance sheet assessment, as well as an adequate operating performance.

The stable outlooks reflect AM Best’s expectation that the company can continue to consolidate its operations between RF&G and M&CGI in a successful and profitable way, while maintaining capital adequacy.

Positive rating actions could take place if the operating performance of RF&G continues to have profitable underwriting results and risk-adjusted capitalization remains at supportive levels for the ratings. Negative rating actions could take place if the risk-adjusted capitalization of the company decreases due to volatility in net results or from capital outflows. Additionally, negative rating actions could also occur if Belize’s macroeconomic environment pressures the financial flexibility of RF&G.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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