AM Best has affirmed the A financial strength rating of Coralisle Group operating subsidiaries.

The ratings agency said it rated Coralisle’s balance sheet as “strongest” and expected the company to report strong earnings.

AM Best stated: “The group’s property and casualty operations have been extended beyond its traditional markets of Bermuda, the Cayman Islands and the Bahamas and, as a result, continues to diversify the composition of its book of business.

“Despite the unprecedented socio-economic impact and continuing uncertainty presented by the Covid-19 pandemic, the Group’s P/C operations have been resilient. In the first three quarters of 2020, the group’s P/C results have benefited from the absence of storm and hurricane losses in its operating territories.”

AM Best added that Coralisle’s health insurance results had been stable over the years, but noted that “the disruption from health reform in Bermuda may result in pressure on earnings, should further revisions to the nation’s health reform affect the competitive health insurance market landscape”.

The ratings agency added: “For now, Bermuda’s government has paused any additional healthcare reform initiatives as it responds to the Covid-19 pandemic’s effects on the healthcare system and the economy.”

AM Best noted that Coralisle’s property business had incurred losses in recent years from damages caused by Hurricane Dorian in 2019 and hurricanes Irma and Maria in 2017.

“AM Best has monitored these loss estimates, collections and related reinsurance contracts of Security and General Insurance Company Ltd, the Coralisle Group entity primarily affected by the storm damage in 2019.

“The financial exposure to Coralisle Group is within its current reinsurance contracts, and the net impact to the organisation has been minimal but has resulted in some earnings fluctuations over the past five years.”

Naz Farrow, CG’s chief executive officer, said: “This is a very positive report reflecting sound business practices, prudent planning and teamwork.

“Best’s assessment of the group’s businesses across multiple jurisdictions is a testament to the strength of our management teams and the integrity of our products.

“Ultimately, Best’s assessment underscores our ability to meet the needs of our clients at all times and in all circumstances, validating our people-first approach to the business.”