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Colina’s AM Best Ratings Remain Impacted by The Bahamas’ Sovereign Ratings Downgrade

Company’s Balance Sheet Strength Assessed as Strong

Nassau, The Bahamas, November 8, 2023 – Last year’s downgrade of The Bahamas’ sovereign debt rating continues to negatively impact Colina Insurance Limited’s (Colina’s) AM Best Credit Ratings (ratings), as reflected in ratings announced by AM Best today.

Colina’s Financial Strength Rating has been affirmed as B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) as “bbb+” (Good). The outlook of Colina’s ratings is 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, while the stable outlook reflects their opinion that Colina will maintain a strong balance sheet and operating performance over the intermediate term.

AM Best assessed Colina’s balance sheet strength and operating performance as strong, its business profile as neutral and its enterprise risk management (ERM) as appropriate.

Colina’s ongoing investment strategy primarily focuses on acquiring long-term sovereign debt securities as they align with the Company’s asset/liability management strategy. Investment choices are also restricted, by the country’s regulatory Exchange Control regime.

A substantial portion of Colina’s total assets is allocated to investments in The Bahamas’ sovereign debt. While last year’s national downgrade continues to adversely affect the Company’s AM Best rating, Colina maintains its confidence in the creditworthiness of The Bahamas’ sovereign obligations.

AM Best acknowledges Colina’s low financial leverage levels, good liquidity and healthy regulatory and absolute capital levels which offset the assessment of the low level of risk-adjusted capital of the Company’s balance sheet strength, as measured by Best’s Capital Adequacy Ratio (BCAR).

Colina’s business profile assessment is bolstered by its position as a market leader in The Bahamas and its low product risk liability offerings, but these are offset by its geographic concentration in The Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.

AM Best has noted in its report that Colina is a market leader in The Bahamas, with low product risk liability 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, COVID-19 and downgrade of Bahamian debt in recent years. AM Best categorizes Colina in its Financial Size Category VIII, which is for insurers with equity between $100MM and $250MM.

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 century 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 B++ (Good) 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 agentservices. Indigo is a property and casualty insurer.

CHBL has more than $900 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

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