AM Best confirms credit ratings from Summit Insurance Company Limited

OLDWICK, NJ–(BUSINESS WIRE)–am the best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) from Summit Insurance Company Limited (Summit) (Nassau, Bahamas). The outlook of these credit ratings (ratings) is Stable.

The ratings reflect Summit’s balance sheet strength, which AM Best rates as the strongest, as well as the company’s strong operating performance, limited business profile and adequate risk management.

Summit’s balance sheet strength is rated at the strongest level based on the strongest rated risk-adjusted capitalization as measured by Best’s capital adequacy ratio (BCAR), the conservative investment portfolio that consists primarily of cash and short-term assets, and the firm’s utilization of quality reinsurers, um Reduce its net exposure to natural catastrophes, particularly wind events. The organic growth of the surplus over the years has been achieved through favorable returns.

AM Best rates Summit’s overall operational performance as strong. In recent years, however, operating metrics have deteriorated towards the lower end of what is considered strong as higher reinsurance rates and claims costs weigh on underwriting. Underwriting pressure reflects the operating environment in the Bahamas, where competition is intense, reliance on reinsurance is very high and primary market prices are currently weak on a historical basis. Management has taken action to restore historical operating performance and in the nine months of 2022 the underwriting results are significantly above those of the previous year. The high geographic concentration and competitive pressures are also reflected in the limited assessment of the Company’s business profile, which also reflects the Bahamas’ high economic and financial system risk and moderate political risk.

READ :  How to buy pet insurance (and save money)

This press release relates to ratings published on AM Best’s website. All ratings information relating to the press release and relevant disclosures, including details of the issuing authority for each rating referenced in this press release, can be found at AM Best Last review activity site. For more information on the use and limitations of rating opinions, see Best Credit Ratings Guide. Information on the proper use of Best’s credit ratings, Best’s performance reviews, Best’s preliminary credit rating and AM Best’s press releases can be found here Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Leave a Reply

Your email address will not be published. Required fields are marked *