AM Best Places Credit Ratings of RF&G Insurance Company Limited Under Review With Negative Implications
AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb" (Good) of RF&G Insurance Company Limited (RF&G) (Belize).
The ratings of RF&G have been placed under review with negative implications following the company's 100% acquisition of the shares of M&C General Insurance Company Limited on Aug. 31, 2023, from Minvielle & Chastanet Limited, a wholly owned subsidiary of Goddard Enterprises Limited. With this acquisition, RF&G aims to achieve an expanded reach in the Caribbean market and seeks to realize enhancements to its overall business. While the funding of this transaction has not been provided and analyzed, the negative implications reflect AM Best's uncertainty about the consolidated balance sheet strength post-transaction.
AM Best will continue to monitor the effects of this transaction as they evolve and provide updates as conditions warrant. The ratings will remain under review until the financial, structural and business strategies have been analyzed.
RF&G is the leading property/casualty insurer in Belize, with over 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.
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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