The financial strength of Bermudian-based Colonial Group International Ltd has been improved from A- to an ‘A’ (Excellent) rating by AM Best.

The credit rating agency’s assessment was that the insurer has the financial strength and ‘excellent ability’ to meet its insurance obligations in all its Bermuda and Caribbean operating subsidiaries.

AM Best categorised Colonial’s balance sheet as ‘strongest’ — the highest rating it can award — after analysing the company’s operating performance, business profile and risk management. Colonial said as a result its primary insurance operating subsidiaries have the highest rating in Bermuda and the Caribbean region.

AM Best noted the continuing growth of Colonial’s medical products business beyond Bermuda, and its expanding geographic presence through its partnership with Beacon Insurance Company of Trinidad & Tobago, which will double the number of territories in which it operates to 12.

Naz Farrow, Colonial chief executive officer said the rating upgrade reflected Colonial’s strategy “to provide residents of Bermuda and the Caribbean region access to world class insurance products.”

She said: “We take pride in providing the protection and support our clients need. That means promptly meeting our commitments to them everywhere we operate. Our strong balance sheet is key to meeting those commitments and that’s what AM Best has recognised.

‘We will use this endorsement to continue building the business for the benefit of our policyholders and new customers in all markets. Our management teams are committed and focused on making this happen.’