Author: Zainab Bhatia

---

 We recognize that our actions and decisions today will shape the way we will be living in the future. We are pleased to share with you some of the milestones we have achieved during Q2-2018.

Check our newsletter below

DID YOU KNOW?
The NAGICO Group has paid in excess of 1/2 a Billion US dollars across the Caribbean
Learn more about our Hurricane claims settlement.

  

 

 

 

 

 

 

---

2017 was a momentous year for the NAGICO Group and St. Maarten in particular. It signified 35 years of existence and operation for NAGICO Insurances and this we commemorated with a number of celebratory events, throughout the islands, with our clients and service providers. We developed and launched a new website which includes a comprehensive inventory of our suit of products and a number of enhanced features for the benefit of our existing policyholders, potential new clients, our partners and those interested in joining our dynamic team.

Check our newsletter below to recap 2017 with us.

---

OLDWICK, N.J., January 17, 2018—A.M. Best has affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of National General Insurance Corporation (NAGICO) N.V. (National General) (St. Maarten) and Nagico Insurance Company Limited (Anguilla), collectively referred to as NAGICO. The outlook of the FSR remains stable, while the outlook of the Long-Term ICR remains positive.

The Credit Ratings (ratings) reflect NAGICO’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

NAGICO’s balance sheet strength is underpinned by its risk-adjusted capitalization assessed at the strongest level, generally overall positive operating earnings and geographic spread of risk throughout the Caribbean. Additional positive rating factors include a comprehensive reinsurance program with quality partners, as well as an ERM program that identifies and effectively manages its underwriting, investment and operational risks. Furthermore, the partnership with Peak Reinsurance Company Limited (Peak Re) is expected to produce additional growth opportunities for NAGICO, as well as provide it with greater capital support and better asset and investment management capabilities.

Partially offsetting these positive rating factors are a weakening of risk-adjusted capitalization and loss of shareholders’ equity in 2017 as a result of losses incurred from Hurricanes Irma and Maria, as well as the soft, highly competitive markets and weak economies throughout the Caribbean. The group’s earnings have generally been positive, despite being lower than most other Caribbean property/casualty insurers that A.M. Best rates. Additionally, NAGICO, like other Caribbean insurers, has significant exposure to catastrophe losses from severe weather-related events. These risks are managed through the utilization of reinsurance to limit their catastrophe exposure to an acceptable risk tolerance level, which effectively protects their surplus.

Peak Re’s 50% acquisition of NAGICO’s ultimate parent, Nagico Holdings Limited in late 2016 coincided with additional reinsurance support from Peak Re. Management believes this transaction will provide NAGICO with more growth, investment and asset management opportunities. A.M. Best will continue to monitor the impact this transaction will have on NAGICO’s operations and future business development.

The positive outlook of the Long-Term ICR reflects the potential for upward movement in the next 12 to 24 months due to anticipation of continued positive factors including sustained improvement in NAGICO’s underwriting performance, stabilized risk-adjusted capitalization at both operating companies, and consistent long-term overall profitability. Factors that might lead to negative rating action include sustained decline in underwriting profitability, material deterioration in risk-adjusted capitalization from outsized catastrophe losses, or a downgrade in the country risk tier ratings of St. Maarten or Anguilla.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

NAGICO is backed by a suite of the world’s largest and strongest reinsurers, each of whom maintains a rating of at least A- from AM Best or Standard & Poors.  NAGICO’s powerful reinsurance panel includes the likes of Swiss Re, Hannover Re, Munich Re, Partner Re, Peak Re and a number of Lloyds Syndicates; together the equity of these entities equate to well in excess of $125 billion US Dollars.

Since the passage of hurricanes Irma and Maria, NAGICO’s robust reinsurers have responded without hesitation. They have made substantial reinsurance recovery payments to NAGICO, amounting to more than $250 million US Dollars thus far, and NAGICO in turn has been steadily settling and paying its policyholder’s claims across the region. Peak Re, A- Excellent rated by AM Best with almost $1 billion US Dollars in equity, a 50% shareholder of NAGICO, has provided exceptional support to the regional insurance group. Peak Re has paid in full its portion of the gross loss caused by the two powerful CAT-5 storms to NAGICO.

“Based on NAGICO’s projected payment schedule, we are in the process of transmitting further reinsurance recoveries to NAGICO from their Catastrophe Excess of Loss Reinsurers.” said NAGICO’s reinsurance broker Thompson Heath & Bond Limited (THB). NAGICO expects to receive another $150 million US Dollars within short order from its reinsurers as it continues to settle the greater than 12,000 claims it has received.

NAGICO looks back to a successful initiative which focused on the local communities. Staff and volunteers handed out Christmas meals and T-shirts on December 9th , 2017. In collaboration with the SXM KPSM Sint Maarten Police, The New Baptist Church and the American University of the Caribbean , we are proud to have brought smiles to the people of Sint Maarten. Thank you to everyone who contributed to the Project of 1000 Smiles!

NAGICO has been delivering on its promise of fast and fair claim settlement since the passing of Hurricanes Irma and Maria.

The loss suffered throughout the region as a result of Hurricanes Irma and Maria is significant. Of the 21 territories within which NAGICO operates, 9 were impacted, with St. Maarten, St. Martin, the British Virgin Islands, Anguilla and Dominica being the most severely affected by the storms. We are pleased to advise that our staff are all safe and following the events they quickly mobilized to restore our operations as well as visit and assist our customers.  Almost two months later, having had
international independent loss adjusters assess the majority of the loss locations, we expect NAGICO’s gross loss from Hurricane Irma to be in the region of $400 million and $150 million for Hurricane Maria. These gross losses are well within our reinsurance program which was purchased based on RMS modelling. NAGICO remains financially strong and stable. Despite the widespread destruction, which is still visible on the islands, the people have a positive and forward looking attitude.
There is a buzz. Rebuilding has begun and NAGICO is doing its part to ensure that claims are quickly settled to facilitate this process. On behalf of the management and staff of NAGICO, thank you for your kind words and care packages following the passage of Hurricanes Irma and Maria. We sincerely appreciated it.

Click on NAGICO at a Glance – Special Edition for more.

Please note that the deadline to submit estimates has been extended to November 15th, 2017.
NAGICO Policyholders are encouraged to submit the full  particulars of their claim no later than the deadline of Wednesday November 15th , 2017.

See more information below. (Click on the image to enlarge)

The people of the Caribbean have been through an imperceptible 2 weeks, having weathered 3 major hurricanes over the past 13 days. Hurricanes Irma and Maria wreaked havoc in the Caribbean region, our home, sadly causing loss of life, numerous areas to be significantly damaged with some being deemed uninhabitable and resulting in many persons being displaced. We are resilient though and together we will rebuild.

Unfortunately, some persons have used the devastating circumstances left in the wake of Hurricane Irma to create and spread malicious rumors about the NAGICO Group. To eliminate any doubt the Shareholders and Board of Directors of the NAGICO Group wish to reassure its stakeholders, in particular its policyholders, that NAGICO is a financially strong and stable institution. The NAGICO Group maintains an exceptional reinsurance program backed by the world’s largest and strongest A rated reinsurers. As NAGICO has consistently done in the past, after every catastrophe, it will honour its obligations to each of its policyholders and settle their claims in a timely manner in accordance with the policy conditions.

We are proud of the NAGICO Team who has been very proactive and diligent with the management of the hurricane claims, having established and communicated multiple channels for customer reporting, including an online platform which was available to clients immediately after the passage of the storms. Our dedicated staff, agents and brokers, despite also suffering losses, have been working relentlessly to satisfy our customers’ needs and our team of adjusters are also actively visiting our clients as we deliver on our promise of fast and fair claim settlement.

The NAGICO Group remains steadfast in its commitment to help its policyholders and the Caribbean region rebuild.

Hurricane Irma and Maria had a great impact on the islands. Please notify us of your Hurricane loss and get the claim handling process started swiftly. Go to this page to notify us.