AM Best Places Credit Ratings of Guardian Holdings Limited and Its Subsidiaries Under Review with Negative Implications

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has placed under review with negative implications the
Financial Strength Rating of A- (Excellent) and the Long-Term Issuer
Credit Rating (Long-Term ICR) of “a-” of Guardian Life of the Caribbean
Limited (GLOC) and Guardian General Insurance Limited (GGIL).
Concurrently, AM Best has placed under review with negative implications
the Long-Term ICR of “bbb-” of Guardian Holdings Limited (GHL), a
publicly traded holding company and the parent of GLOC and GGIL. GHL is
listed on the Trinidad and Tobago stock exchange. All companies are
domiciled in Port of Spain, Trinidad.

These Credit Rating (rating) actions come following the announcement
that NCB Financial Group Limited (NCB) and its wholly owned subsidiary,
NCB Global Holdings Limited, have acquired a majority of the outstanding
shares in GHL following the granting of all necessary regulatory
approvals. NCB, which through its subsidiaries represents the largest
financial group in Jamaica, now owns 62% of the outstanding shares in
GHL.

The under review status with negative implications reflects AM Best’s
concerns over NCB’s exposure to the credit risk associated with Jamaican
sovereign debt, particularly given that its Jamaican sovereign debt
holdings are currently well in excess of its stockholder equity. AM Best
notes that the sovereign ratings of Jamaica are substantially lower than
the sovereign ratings of Trinidad and Tobago, and that the country of
Jamaica has a relatively recent history of sovereign debt defaults.
While GHL has limited direct exposure to the sovereign risks of Jamaica,
there is the potential for GHL’s balance sheet strength to be indirectly
affected by the relatively high exposure of it new parent company, NCB.
AM Best will continue to monitor any interim developments, including
changes in the amount of share of ownership and NCB’s strategic plans
for GHL.

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 Understanding
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 rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

Contacts

Louis Silvers
Senior Financial Analyst–L/H
+1
908 439 2200, ext. 5802
louis.silvers@ambest.com

Alexander Sarfo
Senior Financial Analyst– P/C
+1
908 439 2200, ext. 5779
alexander.sarfo@ambest.com

Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
james.peavy@ambest.com