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FOR IMMEDIATE RELEASE
OLDWICK - MAY 31, 2018 01:58 PM (EDT)
A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B+ (Good) and Long-Term Issuer Credit Rating of “bbb-” to Elan Solutions, Inc. (ESI) (d/b/a United West Indies Insurance) (St. Thomas, U.S. Virgin Islands).
The ratings reflect ESI’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The revised outlooks reflect ESI’s lower level of risk-adjusted capitalization and greater than anticipated operating losses. Risk-adjusted capital levels have been challenged by a trend of operating losses, which have been impacted by much higher than planned administrative expenses. A.M. Best acknowledges the capital support received from the principle owner and expects this to continue as needed. In addition to the operating losses, ESI’s ability to grow premium was affected by the severe hurricanes that hit the U.S. Virgin Islands in the fall of 2017. A.M. Best will continue to monitor ESI’s financial performance closely.
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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