Ratings agency AM Best has affirmed the financial strength ratings of A- (excellent) and issuer credit ratings of “a-” of the life/health and property/casualty operating subsidiaries of Colonial Group International Ltd.The outlook for all ratings is stable. Colonial Group is a wholly owned intermediate holding company of Edmund Gibbons Ltd, the ultimate parent company.AM Best said the rating affirmations reflect the adequate risk-based capitalisation at most of the Colonial Group subsidiaries, consistent increase in their total consolidated equity and diversified business profiles, with their focus being on life/health and property/casualty markets in Bermuda, the Bahamas, Cayman Islands and the Caribbean.“Colonial Group’s life/health subsidiaries have reported favourable underwriting results in their most recent year with the exception of Colonial Life Assurance Company Ltd (Colonial Life), which reported a net loss in 2011 due to a lack of critical mass,” said AM Best. “Despite operating results and risk-adjusted capitalisation at Colonial Life having improved in 2012, its operations, which represent a relatively small part of the overall group operations, remain a challenge. Generating favourable operating results at Colonial Life should provide the basis for its capitalisation to strengthen organically in the near future.”AM Best also stated that Colonial Medical Insurance Company Ltd (Bermuda) and Atlantic Medical Insurance Ltd (Bahamas) are regional companies with a continued strong presence in their respective health markets. On a net income and underwriting basis, the life/health subsidiaries’ combined results continue to be strong, but top line growth remains a challenge, mostly due to a weak economic environment.Within the property/casualty operations, said AM Best, Colonial Group’s three operating subsidiaries, Colonial Insurance Company Limited, British Caymanian Insurance Company Ltd (Cayman Islands) and Security and General Insurance Company Ltd (Bahamas), have generally demonstrated good underwriting results and improved operating performance trends while continuing to benefit from being part of the overall Colonial Group.Furthermore, the property/casualty subsidiaries benefit from Colonial Group’s reinsurance leverage that manages its global property/casualty risks, which allows the subsidiaries to grow direct premium revenues in their core markets.