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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 05, 2016 11:49 AM (EDT)
A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Bupa Insurance Company (Palmetto Bay, FL).
The revised outlooks for Bupa Insurance Company reflect operational and capital support from the parent organization, The British United Provident Association Limited (BUPA), a global health and care company. The ratings take into consideration the parent’s creditworthiness and the access available to BUPA’s well-established network and other resources, which enhance Bupa Insurance Company’s competitive advantage. A.M. Best anticipates that the operational support and financial flexibility afforded by BUPA will continue going forward. A.M. Best will continue to monitor Bupa Insurance Company’s strategic fit within the parent organization.
The rating affirmations also recognize Bupa Insurance Company’s positive operating results in the last two years, as well as the geographic and product offerings expansion in Latin America. Moreover, the company has strengthened its risk-adjusted capitalization position through retained earnings and capital contributions from BUPA. Bupa Insurance Company’s risk-adjusted capitalization is also supported by significant decline in premium leverage in 2015.
Offsetting rating factors include a recent premium decline resulting from a tightening of underwriting standards and benefit design changes. In addition, revenue has been impacted by a transition to having local entities throughout Latin America write products with the majority of premiums subsequently ceded to Bupa Insurance Company.
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.