OLDWICK, N.J., December 14, 2021—AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Summit Insurance Company Limited (Summit) (Nassau, Bahamas). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Summit’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Summit’s balance sheet strength is at the strongest level, based on supportive risk-adjusted capitalization, favorable earnings, which have generally been accretive to surplus growth, and the company’s utilization of reinsurance to reduce its net exposure to natural catastrophes especially wind events. The company’s overall operating performance has been strong and operating metrics remain solid, especially in non-catastrophe years.
However, AM Best considers Summit’s business profile to be limited due to geographic and product line concentration in the Bahamas. This continues to expose Summit to highly competitive soft pricing conditions, high economic and financial system risk and moderate political risk of the Bahamas, as well as changes in the underwriting cycle and the potential for significant gross losses from severe weather-related events. The ratings also take into consideration the highly competitive domestic property/casualty insurance market conditions.
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