NASSAU, The Bahamas — International credit rating agency AM Best has affirmed the credit ratings of BISX-listed insurer Family Guardian Insurance Company Limited and its parent, FamGuard Corporation Limited, citing strong capitalization, solid operating performance, and stable risk management.
AM Best affirmed Family Guardian’s Financial Strength Rating of B++ (Good) and its Long-Term Issuer Credit Rating of “bbb+” (Good). At the same time, the agency affirmed the Long-Term Issuer Credit Rating of “bb+” (Fair) for FamGuard Corporation Limited. Both companies are domiciled in Nassau, and the outlook for all ratings remains stable.
According to AM Best, the ratings reflect Family Guardian’s strong balance sheet strength, robust operating performance, neutral business profile, and appropriate enterprise risk management framework.
The agency assessed Family Guardian’s balance sheet strength as strong, highlighting very strong risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), zero financial leverage, and strong liquidity. These strengths are partially offset by limited investment diversification, including a high concentration of sovereign debt and a material—though declining—exposure to mortgage loans, where delinquencies remain elevated.
AM Best noted that while mortgage loan delinquencies continue to exceed pre-pandemic levels, they are consistent with recent reporting periods and are being actively managed by the company.
Operating performance was described as strong, supported by consistent positive net earnings across multiple business segments and low earnings volatility year over year. This performance has contributed to sustained capital growth.
AM Best also indicated that the company’s governance and enterprise risk management practices remain appropriate for its overall risk profile.
While AM Best acknowledged ongoing concerns related to global economic conditions and their impact on The Bahamas in recent years, the agency pointed to increased capital investment in the tourism sector as a positive trend. It said it will continue to monitor economic developments and adjust ratings as warranted.
