AM Best has affirmed the A- financial strength rating and a- issuer credit rating of Caribbean Alliance Insurance Company (CAI), with both ratings maintaining a stable outlook, the agency said in a press release.
The ratings are based on CAI's continued solid capitalization, favorable operating performance and conservative underwriting strategy, as well as management's expertise in the company's operating area and solid risk management.
Partially offsetting the positives is the company's dependence on reinsurance, the increasingly challenging market due to increasing competition from larger companies as well as the companie's geographic concentration of risk. As an eastern Caribbean insurance provider, CAI is exposed to frequent and severe weather-related events, AM Best said.
The agency upgraded both ratings in June of last year.