General Accident Insurance Company Jamaica Limited

RATING ACTION:

On December 6, 2023, CariCRIS reaffirmed the Issuer/Corporate Credit ratings assigned to General Accident Insurance Company Jamaica Limited (GENAC or the Company) at jmA- (Foreign Currency Rating) and jmA (Local Currency Rating) on its Jamaica national rating scale. A stable outlook was maintained.

RATING SENSITIVITY FACTORS:

Factors that could, individually or collectively, lead to an improvement in the Ratings and/or Outlook include:

  • Net premium/ Policy Liabilities > 0.9 times sustained for 2 consecutive financial periods
  • Total Investment Assets/ Policy Liabilities > 1.2 times sustained for 2 consecutive financial periods
  • Premium to Surplus Ratio > 1.6 times sustained for 2 consecutive financial periods
  • Sustained growth in Profit After Tax (PAT) by > 15% over the next 2 years without adversely impacting capital adequacy and asset quality

Factors that could, individually or collectively, lead to a lowering of the Ratings and/or Outlook include:

  • A 2-notch deterioration of the credit rating of any of GENAC’s top 5 reinsurers by A.M. Best or Standard and Poor’s Ratings Services
  • Loss of relationship with any of the Company’s major reinsurers and failure to provide viable replacements
  • A deterioration in the Company’s Minimum Capital Test Ratio below regulatory minimum sustained for 6 months
  • A 10% fall in gross premium income sustained for 2 consecutive financial periods
  • A loss ratio in excess of 70% sustained for 2 consecutive financial periods

Analysts’ Contact Info:

Keith Hamlet
Mobile: 1-868-487-8356
Megan Dass
Mobile: 1-868-713-6863
Disclaimer: CariCRIS has taken due care and caution in compilation of data for this product. Information has been obtained by CariCRIS from sources which it considers reliable.  However, CariCRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.  No part of this report may be published / reproduced in any form without CariCRIS’ prior written approval.  CariCRIS is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this product.