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OLDWICK, N.J., MARCH 30, 2009 - A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of ColinaImperial Insurance Ltd. (ColinaImperial) (Nassau, Bahamas). The outlook for both ratings is stable. ColinaImperial is a wholly owned subsidiary of its publicly traded parent, Colina Holdings Bahamas Limited (CHBL) [BISX: CHL], which is majority owned by AF Holdings Ltd. (AFH).

The rating affirmations are based on ColinaImperial's leading market share in the life/health market in The Bahamas, its diversified product portfolio, favorable risk-adjusted capitalization and conservative reserving practices. As the life/health market leader, with more than 50% market share in The Bahamas, ColinaImperial continues to leverage its competitive advantages by expanding within the islands of The Bahamas and into other Caribbean and Latin American markets. A.M. Best notes that while ColinaImperial's earnings performance and growth in assets have primarily been achieved through several acquisitions, the company's potential for new business growth and earnings sustainability will depend on its ability to attract new business growth organically in a mature Bahamian life/health insurance market. A.M. Best also notes improved results in ColinaImperial's group and individual health business lines.

Partially offsetting these strengths are the mature nature of the Bahamian life/health market and the recent erosion in The Bahamas' economy, primarily resulting from a decline in the tourism sector. The weakness in the Bahamian economy may impede ColinaImperial's potential for organic growth, its ability to stabilize the volatility in its operating results and increased delinquencies in its mortgage loan portfolio, which would require additional charges to operating income. A.M. Best notes that ColinaImperial has implemented aggressive measures to address the rising delinquencies in its mortgage loan portfolio and provide for all potential losses in that portfolio.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at Best's Credit Rating Methodology.

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