Any word can be an insult. We are good at doing that in the US. However the word itself is not derogatory, vulgar, or demeaning. The use of it negatively here is almost an hidden taunt. It is said in a way that that the words infer a good thing, but the manner in which it is said infers it is a bad thing. The power of the insult is all in how it is taken. For more on dealing with this I would consut the Parenting SEParenting SE.