NASSAU, BAHAMAS — Bahamas First Holdings Limited and its operating subsidiaries have had their creditworthiness and financial strength reaffirmed by global ratings agency AM Best, which maintained stable outlooks on the group’s key insurance entities.
AM Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) for Bahamas First General Insurance Company Limited, based in Nassau, and Cayman First Insurance Company Limited, headquartered in the Cayman Islands. Both companies are the property and casualty operating subsidiaries of Bahamas First Holdings Limited.
According to the ratings agency, the affirmations reflect Bahamas First’s strongest balance sheet strength, supported by robust risk-adjusted capitalization, as measured by AM Best’s Best Capital Adequacy Ratio (BCAR), along with adequate operating performance, a neutral business profile and appropriate enterprise risk management.
AM Best noted that the group has reported consistent capital growth and maintains a well-structured, highly rated reinsurance programme, which plays a key role in protecting shareholder equity — a common feature among Caribbean insurers. While invested assets have historically been concentrated in cash and cash equivalents, the agency observed that the group’s consolidated investment portfolio has shifted over the past year toward fixed income securities, primarily through investments held by Cayman First.
Operating performance has faced recent challenges, largely driven by unfavourable trends in the company’s Cayman health insurance business. However, AM Best said the group has continued to produce favourable underwriting results over the past five years, with notable improvement in both the health segment and the Bahamas property and casualty business during the most recent year.
Underwriting profits reached a five-year high in 2024, supported by improved loss ratios and top-line growth. Investment income also strengthened during the year, reflecting the strategic reallocation of assets from cash into fixed income investments.
Bahamas First maintains a strong market position in The Bahamas, where it is a leading property and casualty insurance provider, and has been expanding its presence in the Cayman Islands. Despite this, AM Best cautioned that both markets remain highly competitive, with broader Caribbean economies continuing to face economic pressures.
The ratings agency also assessed Bahamas First’s enterprise risk management framework as appropriate for the size and scope of its operations, citing clearly defined risk tolerances, sound governance structures and strong capital management policies that establish measurable internal targets for each entity.
