OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating to B++ (Good) from A- (Excellent) and issuer credit rating to "bbb" from "a-" of Gulf Insurance Limited (Gulf) (Trinidad). Both ratings have been placed under review with negative implications.

These rating actions reflect Gulf's historically profitable operating performance, adequate capitalization and strategic geographic spread of risk. Gulf is a multi-line property/casualty insurer operating in several Caribbean markets with its main operating presence in Trinidad and Tobago, St. Maarten and the British Virgin Islands. The company has historically reported consistent operating profits as a result of disciplined underwriting and conservative risk management and pricing strategies. These strengths have enabled Gulf to continue to enhance its capitalization, which remains adequate for its current business profile when measured by Best's Capital Adequacy Ratio.

Partially offsetting these strengths are Gulf's limited financial flexibility and the level of financial leverage at its parent, Gillani Limited, the increasingly competitive regional markets in which it operates and the company's significant reliance on reinsurance.

The ratings have been placed under review as a result of the level of financial leverage and intangible assets at Gillani Limited. As the only subsidiary of its parent, Gulf has a continuing burden to service Gillani Limited's debt obligations, and this could potentially have a negative impact on Gulf's operations. The ratings will remain under review pending further discussions with management relative to capital management strategies at Gillani Limited. At that time, A.M. Best will re-evaluate Gulf's capital position and overall financial condition, and depending on the outcome of these discussions, the potential exists for further negative rating actions.


For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.

Analysts:

Ricardo Longchallon, 908-439-2200, ext. 5676

ricardo.longchallon@ambest.com

or

Henry Witmer, 908-439-2200, ext. 5097

henry.witmer@ambest.com

or

Public Relations

Jim Peavy, 908-439-2200, ext. 5644

james.peavy@ambest.com

or

Rachelle Morrow, 908-439-2200, ext. 5378

rachelle.morrow@ambest.com



Source: A.M. Best Co.