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FOR IMMEDIATE RELEASE
OLDWICK - JULY 25, 2023 02:49 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 Ratings (Long-Term ICR) of “a-” (Excellent) of the members of Clear Blue Insurance Group (Clear Blue) (Guaynabo, PR). See below for a detailed listing of members and Credit Ratings (ratings).
The ratings of Clear Blue have been placed under review with negative implications given the current uncertainty around Clear Blue’s ability to rely on certain letters of credit, posted to back reinsurance placed by Clear Blue with certain reinsurers. The ratings will remain under review pending continued discussions with Clear Blue’s management and their ability to replace certain programs and/or letters of credit to allow for proper reinsurance credit at the time of financial statement filings. On programs involving collateral, Clear Blue retains premiums on a funds-withheld basis or in trust accounts that remain available to pay claims associated with these programs. Although AM Best recognizes the uncertainty that still exists to the validity of the letters of credit in question, and Clear Blue is aggressively looking to address concerns, there is execution and timing risk associated with this process. Placing the ratings under review will allow AM Best to continue its discussions with Clear Blue’s management to determine the effectiveness of management initiatives in mitigating any potential impact to Clear Blue through additional reinsurer participation or protection of the balance sheet.
The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been placed under review with negative implications for the members of Clear Blue Insurance Group:
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.