Insurance industry ratings agency, AM Best, has upgraded the financial strength rating of CG United Insurance Ltd. (CG United) to “A” (Excellent) while affirming the A rating of parent Coralisle Group Ltd and its operating subsidiaries.
AM Best also upgraded CG United’s long-term Issuer Credit Rating (ICR) to “a” (Excellent) from “a-” and revised the outlook for the Barbados-based insurer to ‘stable’ from ‘positive’.
The financial strength ratings of “A” and long-term ICRs of “a” were affirmed for CG’s life/health and property/casualty operating subsidiaries.
In a news release, AM Best said the rating upgrades for CG United reflected its “increased strategic importance” to the Coralisle Group and its “substantially complete integration” with CG. The integration, which followed CG’s 2022 acquisition of CG United, included CG rebranding, reinsurance purchasing, the licensing of CG United entities to sell CG health products and “cost synergies related to consolidation of core systems and processes.”
In May 2022, Massy Holdings Ltd concluded the sale of its Barbados insurance company, Massy United Insurance Ltd to the Coralisle Group, which is based in Bermuda.
In a statement issued on September 7, 2021, Massy said its Barbados subsidiary entered into a share purchase agreement with the Coralisle Group to sell 100 per cent of the Barbados insurance company’s share capital for US$90.5 million.
In the May 2022 news release, the Coralisle Group said the acquisition significantly expanded its presence across the Caribbean, adding 14 new markets where CG United operates.
These include Anguilla, Antigua & Barbuda, Montserrat, Dominica, St Lucia, St Vincent, St Maarten, Grenada, Trinidad and Tobago, Guyana, Curacao, Aruba, Jamaica and Belize.
The Coralisle Group and CG United have complementary operations in The Bahamas, Turks & Caicos, British Virgin Islands, Barbados and the Cayman Islands, with minimal overlap in their product offerings.
CG Chief Executive Officer Naz Farrow said the acquisition was driven by its potential to generate new business and the commercial, cultural and organisational synergies of the two insurance groups.
Farrow said, “We are two well-established companies whose experience, skills and product lines are well matched to meet customer needs in all circumstances. We will work to advance the existing strengths and values United has built over decades.
“In particular, the acquisition will allow us to introduce, over time, CG Health, Life and Pension solutions to the markets where CG United operates, building on its strengths in property and casualty insurance.”