AM Best Assigns Ratings to North American Fire & General and Life Insurance Companies

AM Best has announced it assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of "bbb+" (Good) to North American Fire & General Insurance Company Limited (NAFICO) and North American Life Insurance Company Limited (NALICO), both based in Guyana. The outlook for both ratings is stable.

The ratings for NAFICO reflect its robust balance sheet, adequate operating performance, neutral business profile, and satisfactory enterprise risk management (ERM). Similarly, NALICO's ratings are based on its strong balance sheet, adequate operating results, neutral business profile, and appropriate ERM.

NAFICO, which entered the Guyana market in 1989, is a significant player in the property and casualty insurance sector, focusing on motor, fire, and liability products, and is a leader in auto insurance. NALICO, also founded in 1989, focuses on group life and health insurance policies, annuities, and individual life insurance, placing it among the top five companies in these categories. Both firms are subsidiaries of the Edward B Beharry Group, a Guyanese conglomerate.

The financial strength of both companies is supported by their stable capital bases, effective asset-liability management, and adequate reinsurance strategies. However, their financial stability is challenged by investment risk due to limited secure investment options in their market. Both companies demonstrate adequate operational performance, characterized by manageable loss ratios and consistent profitability. AM Best anticipates ongoing enhancement of their ERM frameworks.

Potential negative rating actions could occur if there is a noticeable decline in their risk-adjusted capital levels, which would affect their balance sheet assessments. Conversely, should the companies improve their operating performance significantly, which bolsters their capital reserves, positive rating actions might be considered.

The ratings are determined under Best's Credit Rating Methodology, which is outlined comprehensively on AM Best’s website. This methodology explains the rating process and criteria used. Key criteria reports employed include analyses of available capital, insurance holding companies, country risk, and BCAR.

AM Best thoroughly reviews its ratings and considers a range of financial data, including assessments from Dec. 31, 2019, to Dec. 31, 2025. The ratings are globally applicable unless otherwise specified. For further details on the rating process, confidentiality policies, and AM Best's operational independence, interested parties can refer to the AM Best Code of Conduct and guides on the appropriate use of ratings available on their website.

AM Best operates as a credit rating agency, news publisher, and data analytics provider globally, serving the insurance industry and maintaining offices in major cities across the world.