AM Best Affirms Credit Ratings of Summit Insurance Company Limited (December 2020)

OLDWICK, N.J., December 4, 2020—AM Best has affirmed the Financial Strength Rating of A-(Excellent) and the Long-Term Issuer Credit Rating of “a-” of Summit Insurance Company Limited (Summit) (Nassau, Bahamas). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Summit’s balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

Summit’s balance sheet strength is assessed at the strongest level, based on supportive risk-adjusted capitalization, favorable earnings, which have been accretive to surplus growth, and the utilization of reinsurance to reduce its net exposure to natural catastrophes such as hurricanes. Overall operating performance has been

strong and profitability ratios compare favorably with its rated Caribbean peers, especially in non-catastrophe years. However, AM Best considers Summit’s business profile to be limited due to geographic and product line concentration. This exposes the company to highly competitive soft pricing conditions, moderate economic and political risk and elevated financial system risk, as well as changes in the underwriting cycle and the potential for

significant gross losses from severe weather-related events. The ratings also take into consideration the highly competitive domestic property/casualty insurance market conditions and the moderate country risk of the Bahamas.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases .

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com. Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.