HONG KONG--(BUSINESS WIRE)--A.M. Best has revised the implications of the under review status to developing from negative for the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Century Insurance Company (Guam) Limited (CIC Guam) (Guam).
The actions taken on these Credit Ratings (ratings) follow A.M. Best’s preliminary discussion with CIC Guam’s management regarding the company’s new distribution strategy following the termination of its exclusive managing general agent (MGA), effective Oct. 1, 2017. The company has entered definitive brokers’ agreements with three brokers, one of which is its former MGA, and one agency agreement with an affiliated broker newly established in Guam to serve the insurance needs of parent-related business. The company expects its former MGA to lead the premium contribution of its book of business. CIC Guam also has brought the underwriting function in-house subsequent to the termination of the MGA agreement.
The extended under review status reflects the execution risk associated with the new distribution and underwriting strategy. The potential rating impact is uncertain, given that the ratings have been placed under review with developing implications. A.M. Best will continue to monitor closely CIC Guam’s new business development to assess the impact on its business profile and operating performance over the next six months.
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