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FOR IMMEDIATE RELEASE
OLDWICK - MAY 19, 2020 01:06 PM (EDT)
AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Tri-State Consumer Insurance Company (Tri-State) (Jericho, NY).
These rating actions follow the uncertainty surrounding the approval of a 100% quota share reinsurance contract with an impaired insurance company. This agreement, which potentially could be executed in the near term, is expected to substantially increase probable maximum losses and the need for increased catastrophe reinsurance protection, which places pressure on the current balance sheet assessment.
AM Best expects to resolve the under review with negative implications status when a full review of the balance sheet strength is done following the approved quota share reinsurance contract, including a thorough review of the reinsurance program to assess if enough coverage has been obtained. AM Best will evaluate this on an ongoing basis as updated information becomes available. Further rating action also may be taken if AM Best believes Tri-State’s measured levels of balance sheet strength, operating performance, business profile or enterprise risk management no longer supports its current rating level.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.