September 22, 2020

A.M. Best Affirms Ratings of Cayman Islands’ Island Heritage Insurance Company, Ltd


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Island Heritage CFO Jon Coleman

Cayman Islands based insurance provider, Island Heritage, has had its financial strength rating of A-(Excellent) and issuer credit rating of “a-“affirmed by A.M Best Co. The outlook for both ratings is stable. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at

The ratings reflect Island Heritage’s solid level of risk-adjusted capitalisation, favorable operating results, experienced management team and local market expertise.

Solid underwriting results along with investment income have led to organic surplus growth in recent years, as well as a strong five-year average combined ratio. This has enabled Island Heritage to maintain more than adequate risk-adjusted capitalization for its current business profile. The management team at Island Heritage has extensive knowledge of each island and maintains effective risk management strategies. The company focuses on the unique needs of the Caribbean property owner and designs its programs to provide the depth of coverage needed. In addition, catastrophe risk is mitigated by Island Heritage’s conservative reinsurance program, which protects its capital from both the frequency and severity of events.

Partially offsetting these favorable rating factors is the geographic concentration of Island Heritage’s business in the Caribbean, which exposes it to substantial losses from catastrophic events, the increasingly competitive landscape in its operating territories and local regulatory risk. Island Heritage, like other regional insurers, manages its exposure through the heavy use of reinsurance protection.

While the outlook is stable, factors that could contribute to rating enhancement include continued strong underwriting performance and overall profitability, and an upgrade in Cayman Islands’ country risk tier rating.

Factors that may lead to negative rating actions include a sustained decline in Island Heritage’s underwriting profitability, significant deterioration in its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR) and a downgrade in Cayman Islands’ country risk tier rating.

Island Heritage CFO Jon Coleman added, “The AM Best A- (Excellent) financial strength and credit rating (stable outlook) recognizes the strengths of Island Heritage’s solid level of capitalization and enhanced reinsurance protection against severe and frequent catastrophic events. On behalf of our management team, I would like to thank our valued customers, esteemed business partners, supportive shareholders and dedicated staff for making Island Heritage Your Caribbean Insurer. With Island Heritage, Strength Delivers.”

For A.M. Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit

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


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