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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 21, 2022 09:29 AM (EDT)
AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Multinational Insurance Company (Multinational) (Hato Rey, Puerto Rico). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Multinational’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect rating enhancement from its parent company, Aseguradora Ancón, S.A.
The rating upgrades reflect a revision of Multinational’s operating performance assessment to strong from adequate. The company has reported stable results due to strategic initiatives, including revised underwriting guidelines and expense control measures, which have resulted in underwriting performance metrics that have outperformed the commercial casualty composite over the past five years. Results also have benefited from modest, but consistent, investment earnings and ongoing parental support. The company has reported a considerable increase in surplus to support premium growth.
AM Best assesses Multinational’s business profile as limited due to its geographic concentration in Puerto Rico, which exposes its results to weather-related events, competition 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 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.