A.M. Best Affirms Ratings of Harmony General Insurance Company Ltd.

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OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of Harmony General Insurance Company Ltd. (Harmony) (Barbados). The outlook for both ratings is stable.

The ratings reflect Harmony’s solid risk-adjusted capitalization, overall earnings in recent years and conservative reinsurance program. Harmony is owned by ABH Holdings Ltd., a privately owned, Barbados-domiciled holding company.

Harmony has reported overall earnings in recent years, which has enabled the company to enhance its capitalization through retention of earnings. Harmony continues to maintain more than adequate risk-adjusted capitalization for its current business profile. Although the company operates in a region that has historically been less prone to catastrophic events, Harmony maintains a very conservative reinsurance program to limit its exposure to natural disasters.

Partially offsetting these positive rating factors is the geographic concentration of Harmony’s business in an increasingly competitive domestic market, its reliance on reinsurance as a catastrophe risk mitigation strategy and the company’s limited financial flexibility as a result of its private ownership structure.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Understanding Universal BCAR”; “Natural Catastrophe Stress Test Methodology”; and “Assessing Country Risk.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

CONTACT:

A.M. Best Co.
Ricardo Longchallon, 908-439-2200, ext. 5676
Senior Financial Analyst
ricardo.longchallon@ambest.com
or
Peter Dickey, 908-439-2200, ext. 5053
Assistant Vice President
peter.dickey@ambest.com
or
Carole Lovell, 908-439-2200, ext. 5445
Public Relations Associate
carole.lovell@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com