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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 29, 2018 11:29 AM (EST)
A.M. Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “bbb+” from “a-” of INTEGRAND Assurance Company (INTEGRAND) (San Juan, Puerto Rico). Additionally, A.M. Best has placed these Credit Ratings (ratings) under review with negative implications.
The rating downgrades reflect A.M Best’s assessment of INTEGRAND’s balance sheet strength, which A.M. Best categorizes as very strong, its adequate operating performance, limited business profile and marginal enterprise risk management (ERM). These rating actions follow the company’s recently filed third-quarter statutory statement, which reflects a sizable decline in policyholder surplus due to adverse development on Hurricane Maria and Irma losses of approximately $15 million. As noted, A.M. Best has revised the assessment of INTEGRAND’s ERM, which A.M. Best now categorizes as marginal. The assessment downgrade was driven by the size of the additional catastrophe losses relative to amounts previously disclosed to A.M. Best, which creates uncertainty regarding the company’s ERM program.
Additionally, while the rate of new claims associated with Hurricane Maria and Irma has slowed more recently, the potential for additional development remains an ongoing concern. Furthermore, the company has considerable exposure to reinsurance recoverables, which exposes capital to potential dispute risk and could potentially change A.M. Best’s current assessment of capital. Accordingly, these ratings will remain under review pending A.M. Best’s analysis of the company’s business plans.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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