Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

AM Best Affirms Credit Ratings of Casualty & General Insurance Company (Europe) Limited, a Subsidiary of CG Holdings (Gibraltar) Limited

BY Business Wire | CORPORATE | 12/10/25 12:12 PM EST

LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of ?bbb-? (Good) of Casualty & General Insurance Company (Europe) Limited (CGICE) (Gibraltar). The entity is a subsidiary of CG Holdings (Gibraltar) Limited (CGH), the non-operating holding company of the group. The outlook of these Credit Ratings (ratings) is stable.

The ratings of CGICE reflect its strategic importance to the group, and CGH?s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

CGH?s balance sheet strength assessment is underpinned by its consolidated risk-adjusted capitalisation, which was at the very strong level at year-end 2024, as measured by Best?s Capital Adequacy Ratio (BCAR). The group?s balance sheet strength assessment considers CGH?s good internal capital generation; however, its relatively small capital base exposes it to potential volatility from increased capital requirements, for example stemming from material growth in premium risk. An additional offsetting factor is CGH?s high dependence on reinsurance, with just over 65% of premium ceded at year-end 2024, approximately 35% of which was ceded to a non-rated affiliated company. The associated credit risk is partially mitigated through funds withheld. Moreover, management has already taken steps to decrease its exposure to the single affiliated counterparty, which is expected to reduce further over the short to medium term.

CGH has a track record of good operating performance, demonstrated by a five-year (2020-2024) weighted average combined operating ratio of 88.1% (as calculated by AM Best). With the shift in the business mix toward short-tail insurance lines, loss ratios are expected to remain in line with recent averages; however, sustained profitability during this growth phase will be demonstrated ultimately over time. CGH?s investment income supports overall earnings with a positive, albeit limited, contribution from investments, mainly held as cash and structured deposits, evidenced by a five-year weighted average investment yield (excluding unrealised gains) of 0.9%.

Through its primary insurance vehicle, CGICE, the group is licensed to write a variety of insurance products, with a focus on the United Kingdom pet line of business (83% of year-end 2024 gross written premium [GWP]). With GBP 80.8 million of GWP in 2024, CGH?s profile is relatively small, with business concentrated primarily in the competitive United Kingdom insurance market and predominantly written through managing general agents. The group?s ambitious business plans show future premium growth driven by the continued development of its home and pet insurance businesses; however, success is highly dependent on distribution partnerships.

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 use of Best?s Credit Ratings, Best?s Performance Assessments, Best?s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best?s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright ? 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article