The financial strength rating of A- (Excellent) and issuer credit rating of “a-” has been affirmed for [Bahamas First General Insurance Company Limited]( (BFG) by A.M. Best Co. The outlook for both ratings is stable. BFG is the primary holding of its parent company, Bahamas First Holdings Limited (BFH). Both companies are domiciled in Nassau, Bahamas.

The ratings are based on BFG’s continued solid capitalization, favorable operating performance and established presence in the Bahamian market. These factors are supported by the company’s conservative catastrophe program, underwriting controls, local market expertise and enhanced risk management.

Historically, BFH has contributed capital to BFG to support growth initiatives and to enhance its capital position. A.M. Best expects that BFH will continue to support BFG with additional capital contributions, allowing BFG to maintain the level of risk-adjusted capitalization necessary for its rating level.

These positive factors are somewhat offset by BFG’s geographic concentration and subsequent exposure to hurricane activity. However, A.M. Best affirms that this concern is mitigated by BFG’s strong reinsurance program with prominent reinsurance companies. The program reduces BFG’s net probable maximum loss to a manageable level.