AM Best Ratings for North American Insurance Companies: Stability and Strength

AM Best has awarded 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 ratings maintain a stable outlook, reflecting the companies' overall stability in the insurance market.

For NAFICO, the ratings are anchored by a very strong balance sheet and adequate operating performance, supported by a neutral business profile and suitable enterprise risk management (ERM). NALICO shares similar assessments, underscored by its robust financial position and operational adequacy. These elements are crucial in maintaining their creditworthiness and insurance underwriting service standards.

Both NAFICO and NALICO were established in 1989, marking their longstanding presence in the industry. NAFICO stands as the third-largest insurer in Guyana, primarily engaged in property and casualty insurance, especially motor, fire, and liability, where it excels in auto insurance. Similarly, NALICO targets group life and health insurance, annuities, and individual life insurance, placing it among the top five in its category. Both insurers are integral parts of the Edward B. Beharry Group.

The strong balance sheets of both insurers are supported by consistent capital levels, advanced asset-liability management, and robust reinsurance strategies. Investment risks remain a concern due to the limited availability of secure investment instruments in Guyana. However, these are mitigated by favorable macroeconomic conditions. Both companies report adequate operating performance, with stable claims payouts and consistent profitability. AM Best foresees further advancements in their ERM capabilities.

Potential downgrades in ratings could arise if there is a decline in risk-adjusted capitalization impacting the balance sheets, or a sustained decrease in operating performance due to underwriting challenges or net losses. Conversely, enhancements in operating performance and capital fortification could lead to an upward revision of their ratings.

This announcement is linked to the Credit Ratings available on AM Best’s website. For detailed rating information and disclosures, visit AM Best’s Recent Rating Activity page. Comprehensive insights on Credit Rating opinions and their proper applications can be found in the Guide to Best’s Credit Ratings and the Guide to Proper Use of Best’s Ratings & Assessments.

AM Best functions as a global credit rating agency, news publisher, and data analytics leader, with a focus on the insurance sector. Headquartered in the U.S., it operates in over 100 countries with regional offices worldwide. For more information, explore www.ambest.com.