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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 03, 2021 08:23 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Multinational Insurance Company (Multinational) (Hato Rey, Puerto Rico).
The ratings reflect Multinational’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile, appropriate enterprise risk management (ERM) and rating enhancement from its parent company, Aseguradora Ancón, S.A.
The outlook revisions to positive are based on AM Best’s expectation of continued favorable underwriting and operating performance, despite modest volatility from weather-related events, while maintaining its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Multinational’s strategic initiatives, including revised underwriting guidelines and expense control measures, have resulted in underwriting performance metrics that outperformed its peer group over the past five years. When combined with growing investment earnings due to increased overall levels of capital and ongoing parental support, Multinational has reported considerable gains in surplus to support premium growth.
Multinational’s business profile is limited due to its geographic concentration in Puerto Rico, which exposes its results to weather-related events and regulatory challenges. However, the company’s market position is supported by a solid and tenured management team. The company also benefits from an appropriate level of ERM, including a developed risk management framework and comprehensive reinsurance program.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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.