Nassau, The Bahamas, October 13, 2022 – The most recent downgrade in the Bahamian sovereign debt rating has negatively impacted Colina Insurance Limited’s (Colina’s) AM Best Credit Ratings (ratings).

AM Best acknowledges that Colina’s balance sheet strength remains strong, as evidenced by its capital ratios which have been steadily increasing and are now at their highest levels ever. AM Best further assessed Colina’s operating performance as strong, its business profile as neutral and its enterprise risk management as appropriate. Nevertheless, the Company’s Financial Strength Rating (FSR) went from A- (Excellent) to B++ (Good). AM Best has adjusted the outlook of Colina’s ratings from negative to stable. The FSR B++ rating reflects AM Best’s opinion that Colina has a good ability to meet its continuing insurance policy and contract obligations.

Colina’s continuing investment strategy includes, but is not limited to, acquiring long-term sovereign debt securities as these assets provide the best asset/liability matching, moreover, the Company’s investment options are limited by the country’s Exchange Control regime.

Colina’s investments in The Bahamas’ sovereign debt comprise a significant proportion of the Company’s total assets and the country’s downgrade has negatively impacted its AM Best rating, however, Colina still considers The Bahamas’ sovereign obligations as credit worthy.

AM Best has noted in their report that Colina is a market leader in The Bahamas with creditworthy product offerings. The Company’s ERM framework and governance structure are appropriate for its risk profile. Colina’s operating performance remains strong, with consistently positive operating earnings and minimal impact to operating earnings resulting from Hurricane Dorian and COVID-19 in recent years.

About Colina Insurance Limited (Colina)

Colina is a diversified financial services company, offering comprehensive life and health insurance solutions. Colina is wholly-owned by Colina Holdings Bahamas Limited (CHBL). CHBL is a Bahamian Company, built on a firm foundation of trust, integrity and responsibility. Colina has evolved over the past 155 years to become The Bahamas’ largest life and health insurer, with a solid reputation for providing insurance and related financial services products that help clients prepare for life’s unexpected events.

About Colina Holdings Bahamas Limited

Colina Holdings Bahamas Limited (CHBL) is a holding company incorporated in 1993. CHBL subsidiaries provide financial services solutions through the production, distribution, and administration of insurance and investment products. CHBL’s subsidiaries include Colina Insurance Limited (“CIL”), Colina General Insurance Agency & Brokers Limited (“CGIA”), Colina Financial Advisors Ltd. (“CFAL”) and Indigo Insurance (Bahamas) Limited (Indigo).

CIL is The Bahamas’ largest life and health insurer and is rated A- (Excellent) by AM Best Company.CGIA is a general insurance agent and broker. CFAL is an investment advisory firm, established to provide financial services including investment management, pension management and administration, corporate advisory services, escrow, registrar and transfer agent services. Indigo is a property and casualty insurer.

CHBL has more than $858 million in total assets and $200 million in total shareholders’ equity.

About AM Best

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.