A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating (ICR) of "A-" of Family Guardian Insurance Company Limited (Family Guardian).

Concurrently, A.M. Best has affirmed the ICR of  "bbb-" of Famguard Corporation Limited (Famguard) [BISX: FAM] (both domiciled in Nassau, Bahamas). Family Guardian is a wholly owned subsidiary of its publicly traded parent, Famguard. The outlook for all ratings is stable. The rating actions for Family Guardian reflect its stable financial performance and adequate reserves specific to its investment in direct residential and commercial loans.

A.M. Best remains concerned regarding the risks associated with Family Guardian's high concentration in mortgage loans, but notes that the company's level of mortgage loans as a percentage of total investment assets, as well as a percentage of total capital, have continued to decline. The company holds mortgage loan provisions, which have proven to be adequate over time; A.M Best considers this risk exposure as manageable at the current time.

Family Guardian faces inherent risks associated with the overall weak economic environment in the Bahamas which can present risks to longer-term financial results and growth opportunities. A.M. Best recognizes that despite the limited growth opportunities in its local market, Family Guardian has been able to grow premium income in core business lines.

Offsetting these negative rating factors are Family Guardian's more-than-adequate level of risk-adjusted capitalization and its sustainable marketing presence as one of the two leading life insurance companies in The Bahamas. A.M. Best further notes that company trends with respect to profitability and capital are favorable with consistent growth in stockholders' equity, despite shareholder dividend payments. Family Guardian's three core business segments -- home service, financial services and group division led by BahamaHealth -- provide business diversification and competitive advantages in a generally limited and mature marketplace.

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