The review of British Caribbean Insurance Company Limited’s (BCIC) ratings review has hit another speed bump as insurance rating agency AM Best has highlighted the challenge of ascertaining the impact of Hurricane Melissa on the company.

AM Best has assigned an “under review with developing implications status” to BCIC’s financial strength rating of B++ (good) and its long-term issuer credit rating of “bbb”.

“The credit ratings reflect BCIC’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,” the insurance rating agency outlined.

“The under review with developing implications status is based on a degree of uncertainty regarding the ultimate financial impact from Hurricane Melissa on BCIC and JN General Insurance Company (JNGI), as well as BCIC’s acquisition of JNGI,” AM Best further clarified.

To complete the review, BCIC and JNGI’s management teams will need additional time needed to fully assess claims and damages from Hurricane Melissa with its various reinsurance partners. AM Best notes, though, that the combination of quota share, reinsurance and excess of loss treaties maintained by BCIC and JNGI should minimise the financial impact of the storm.

“In addition, there are ongoing discussions with management on the pending completion of business strategy for the combined organisation,” the rating agency revealed.

“The ratings for BCIC will remain under review with developing implications until AM Best has received sufficient information to assess the financial implications of Hurricane Melissa on its credit rating fundamentals. Furthermore, AM Best will continue discussions with management until the completion of the amalgamation, as well as the strategic and financials for the combined organisation,” it continued.

Other considerations

AM Best began reviewing BCIC’s ratings on August 14, 2025, after the completion of the acquisition of JNGI by BCIC. The two organisations are currently operating independently, pending the amalgamation of the two into one legal entity. That amalgamation, which is pending regulatory approval, should be completed in the late second quarter of 2026.

Jamaica’s Fair Trading Commission, which is reviewing BCIC’s acquisition of JNGI for regulatory approval, in an update has stated its concern that BCIC will have a dominant position in the local general insurance market if there is to be a merger of both entities.

“Before the acquisition, the market was considered unconcentrated, meaning no single company held a dominant market share. However, following the transaction, BCIC and JNGI combined would control the largest share in the property insurance segment, creating a moderately concentrated market,” the FTC shared.

“Another concern is that the merged company could gain preferential access to a major segment of the property insurance customer base—specifically, the mortgage portfolios of Victoria Mutual Business Society and JN Bank Limited,” the local regulator added. Though the FTC‘s review of BCIC’s acquisition of JNGI is not yet completed, it will have implications on AM Best’s continuous review of BCIC.