|Edward Zonenberg |
Senior Financial Analyst
+1 908 439 2200, ext. 5135
+1 908 439 2200, ext. 5325
Manager, Public Relations
+1 908 439 2200, ext. 5159
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 17, 2023 02:52 PM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Óptima Seguros (San Juan, PR). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Óptima Seguros’ balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The upgrade of the Long-Term ICR is in recognition of the improvement in Optima Seguros’ balance sheet strength, which reflects management’s ability to generate profits, grow policyholder surplus and improve its level of risk-adjusted capital. In recent years, management has successfully re-balanced the company’s book of business and significantly reduced its catastrophe exposure, while at the same time expanding its book in select markets and growing policyholder surplus. Favorable loss reserve development and a gradual reduction in reinsurance recoverable balances and reduced credit risk are other contributing factors.
The operating performance assessment considers Óptima Seguros’ emphasis on small-to-medium commercial enterprises (SME), continuing efforts to further leverage its agency relationships and management’s ability to successfully execute its plans and strategy in recent years. The business profile assessment considers the company’s limited geographic profile, as well as some of the competitive headwinds in a saturated and mature market. In addition, management has established its own ERM framework and has set specific risk tolerances and risk appetites in conjunction with its current business plan.
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.