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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 26, 2016 11:52 AM (EST)
A.M. Best has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of “a” to Pan-American International Insurance Corporation (PAIIC) (Cayman Islands), a wholly owned subsidiary of INRECO International Reinsurance Company (INRECO) and an indirect subsidiary of Pan-American Life Mutual Holding Company (PALMHC), PAIIC’s ultimate parent. The outlook assigned to both ratings is stable.
The ratings reflect the benefits derived from PAIIC’s long-established presence and name recognition in its markets, as well as PAIIC’s relatively creditworthy product offering (mostly dollar-denominated current assumption universal life), solid consolidated risk-adjusted capitalization, well-performing fixed-income investment portfolio and positive net operating performance.
Partially offsetting these positive rating factors are the company’s limited product breadth and niche focus, selling primarily dollar-denominated universal life insurance to affluent non-Cayman Islands resident clientele. The ratings also reflect the economic, political and financial system risks associated with the select countries in South America, Central America and the Caribbean from which PAIIC’s clients originate and PAIIC derives the vast majority of its premium, including Chile, Brazil, Venezuela, the Dominican Republic and Peru.
However, A.M. Best notes that country risks are somewhat mitigated by the fact that products are dollar-denominated and generally backed by dollar-denominated investments held in the Cayman Islands.
The ratings also reflect the benefits to PAIIC of being affiliated with the Pan-American Life Insurance Company, its wholly owned subsidiary, Pan-American Assurance Company, and INRECO – collectively referred to as the Pan-American Life Insurance Group (Pan-American Life). Pan-American Life’s ratings remain unaffected by this rating action.
This press release relates to rating(s) 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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.