International insurance rater A.M. Best Co. announced this week that it had placed the A- (Excellent) rating of Sagicor General Insurance (Cayman) Ltd. under review with negative implications.

However the insurer believes the rating review will be short-lived, according to Michael Gayle, Sagicor General’s senior vice president – property and casualty.

 “It is our understanding that this course of action is expected where there is a change of ownership,” he said. “When the transaction has been completed, the position will be re-assessed and we are confident that the ratings will be reaffirmed.”

Sagicor Life Jamaica Limited announced it had sold its 75.2 per cent share in the general insurance company to Bahamas First Holdings Limited.

The Cayman Islands Government retains a 24-per cent stake in the company, which it acquired as part of a negotiated settlement of its Hurricane Ivan damage claim with Cayman General Insurance.  Cayman General changed its name to Sagicor General after the latter bought a controlling interest in the company in 2005.

Mr. Gayle said last week there would be an announcement concerning the new name of the insurer in the next couple of weeks.

Sagicor has maintained ownership in a separate life insurance entity in the Cayman Islands and the A.M. Best rating review isn’t applicable to that company.

A.M. Best said Sagicor General’s rating will remain under review pending the closing of the transaction and A.M. Best’s discussion with Bahamas First Holdings management regarding its strategic plans for Sagicor Cayman and its future role within the BFH group.

Mr. Gayle indicated last week that the insurer intends to conduct “business as usual” going forward.