International credit ratings agency A.M. Best has affirmed the financial strength of one of Family Guardian's major shareholders.  The revised outlook for Sagicor Capital Life Insurance Company Limited's - which has 20 percent in the Bahamian company - was sent down yesterday.  "A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "A-" of Sagicor Life Inc. (St. Michael, Barbados) and its operating life insurance subsidiary, Sagicor Capital Life Insurance Company Limited [in] Nassau, Bahamas," read the notice.

The movement may be good news for the company's book of business here in The Bahamas, given the upgrade expresses greater confidence in its financial position.  Sagicor purchased around 20 percent of shares in FamGuard back in 2005, with the alliance intended to bring to Family Guardian access to new technology, a wider range of life insurance and wealth accumulation products and services, and an avenue to take advantage of joint marketing and sales initiatives.

With the changing business landscape both locally and internationally, the alliance with Sagicor was expected to allow Family Guardian to achieve greater efficiencies in its operations, thereby allowing it to compete more effectively on scope of product and pricing capabilities.

According to A.M. Best, Sagicor General is among the largest property/casualty insurers in Barbados and has a significant presence in Trinidad and Tobago, Dominica, St. Lucia, and Antigua and Barbuda.  Sagicor General has continued to produce positive overall operating results, which are derived from the company's sound underwriting performance in conjunction with a steady stream of investment income. The company also benefits from the synergies derived as a subsidiary of SFC (Sagicor Financial Corporation).

Offsetting factors include the weak economic environment in the Caribbean region and the negative impact of natural catastrophe losses globally, said A.M. Best, which may pose challenges for the group, despite the recent restructuring of its Lloyds Operation.

"The increase in year-over-year revenue growth and net income, excluding losses in its Lloyds Operation, has been modest and reflects the challenge of top line growth due to the mature nature of the life insurance market in the Caribbean," A.M. Best noted.

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