Ratings agency AM Best is giving Family Guardian a grade of A-(Excellent) on its financial strength score, citing, among other things, its ramp up in marketing.

The agency, also extending the insurer an issuer credit rating of "A-", chalked up the scoring to Family Guardian's positive risk-adjusted capitalization, profitable aggregate operations and expanded marketing presence in The Bahamas.

"Family Guardian continues to seek new business opportunities and is the second-largest life insurance company," the agency reported. "Trends in profitability and stockholders' equity continue to remain positive on a consistent basis, with growth in equity over the past five years despite dividend payments."

Family Guardian's three core business segments, home service, financial services and group division, led by its BahamaHealth, have helped diversify its operation and increase its competitive advantages in this mature marketplace.

The international ratings agency did, however, note that those positives were partially dampened by weak operating results in 2007 from the financial services segment, the volatility in its health business and the high concentration of mortgages in its asset portfolio.