Credit rating agency upgrades Guam company

The AM Best credit rating indicates a company’s level of financially security and are based on the belief that a company is able to meet its financial obligations. AM Best maintains an extensive database of life/health, property/casualty insurance companies worldwide. It is the world's largest credit rating agency specializing in the insurance industry.

On Aug. 8, AM Best announced it “has upgraded the financial strength rating of Century to A- (Excellent) from B++ (Good) of Century Insurance Co. (Guam) Ltd.”

The U.S. Small Business Administration offered disaster assistance after Typhoon Mawar devasted Guam in May 2023, with a resultant effect on the insurance industry. Journal file photo

AM Best went on to say in its release, “The ratings reflect CIC Guam’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

“CIC Guam has reported underwriting profits for nine consecutive years and net income in each of the last 10 years. In 2023, the company was impacted by the most severe weather event since 2002, with Typhoon Mawar passing over Guam. Despite this event, CIC Guam exceeded expectations with an 83.1% combined ratio, demonstrating the effectiveness of the reinsurance program,” AM Best said.

George Chiu is president of Century Insurance, which does business in Guam, the Northern Mariana Islands and the Micronesia region. The company is an affiliate of the Tan Holdings group, with other business units bearing the Century brand. Tan Holdings businesses include AB Risk Solutions, Asia Pacific Airlines, Blue Bay Petroleum, the Crowne Plaza resorts, and Luen Thai Fishing Venture.

For a detailed analysis of the insurance market, see “Insurance industry experts talk turkey in a tough market,” in the March-April 2024 issue of Guam Business Magazine and see the latest in the industry in a column by Frank Campillo of Calvo's SelectCare in the July edition of the Marianas Business Journal. mbj

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Credit rating agency upgrades Guam company