AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of Family Guardian Insurance Company Limited (Family Guardian). Concurrently, AM Best has affirmed the Long-Term ICR of “bb+” (Fair) of FamGuard Corporation Limited. Both companies are domiciled in Nassau, Bahamas. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Family Guardian’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The balance sheet strength assessment reflects Family Guardian’s risk-adjusted capitalization at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), no financial leverage and strong liquidity, which is offset by its limited investment options, including a high concentration of sovereign debt holdings and a material but declining allocation to mortgage loans, within which there are significant delinquencies. AM Best notes that while the volume of mortgage loan delinquencies are consistent with recent reporting periods and remain elevated compared to pre-COVID levels, the actual dollar value has declined below its pre-pandemic level.

Family Guardian’s operating performance remains strong, with a continued trend of positive net earnings from multiple business segments with low volatility from year to year, which have supported capital growth.

The business profile assessment considers Family Guardian’s good market position in the Bahamas and creditworthy product offerings offset by its geographic concentration in the Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.

Concerns remain regarding the continued impact from global economic conditions over the past few years on the Bahamas. AM Best will continue to monitor the economic conditions in the Bahamas and will take appropriate rating actions as they change.

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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