...Concentration in Jamaica and Barbados: Fitch's ratings for Sagicor Financial Corporation (SFC) reflect the operating environments of the main subsidiaries domiciled in Barbados and Jamaica and very high exposure to below investment-grade sovereign debt of the respective countries. Fifty eight percent of total revenues come from Jamaica and Barbados and the sovereign debt together equates to over 150% of SFC's consolidated shareholders' equity. Transfer and Convertibility (T&C) Risk: SFC's Issuer Default Rating (IDR) has been pulled down one notch due to concern over T&C risk tied to the company's business concentration in Barbados and Jamaica. The Positive Outlook for SFC's IDR is based on the Positive Outlook for Jamaica's sovereign rating of `B¡' (local and foreign currency IDR) and country ceiling rating of `B'. Strong Capitalization Levels: Capitalization is strong, but potentially more volatile than many insurers rated by Fitch. Management uses Canadian regulatory capital standards...
