A.M. Best Assigns Initial Rating to Jamaica International Insurance Company.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 12, 2004 A.M. Best Co. has assigned an initial financial strength rating of B++ (Very Good) to Jamaica International Insurance Company Limited (JIIC JIIC Junction Isolated Integrated Circuit ) (Kingston, Jamaica The City of Kingston is the capital and largest city of Jamaica. It is located on the southeastern coast of the island country at Coordinates: . ). The rating outlook is stable. The rating is based on JIIC's strong capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , excellent operating results, liquid investment portfolio and support from its parent company, Grace, Kennedy & Company Limited, one of the most prominent business conglomerates in the region. Offsetting these factors is the current challenging macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. environment in Jamaica and the high expense structure of the company due to elevated reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. costs. The company has been able to generate capital internally in the last five years due to strong operating results driven by income from its investment portfolio. As a member of the Grace, Kennedy & Company Limited conglomerate, JIIC benefits from the brand recognition and support of its parent. However, JIIC will be challenged by the recent deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the Jamaican economy and the geographic concentration of risk on the island. Given the country's weather-related catastrophic exposure, JIIC depends on reinsurance for earnings and surplus protection. JIIC has in place a comprehensive catastrophe reinsurance program that minimizes its net retention of losses from catastrophic events. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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