Best’s News & Research Service - May 25, 2007 11:11 AM (EDT)
A.M. Best Upgrades and Assigns Ratings to Trans-Oceanic Life Insurance Company
OLDWICK, N.J. //BestWire// - A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and assigned an issuer credit rating of “bbb” to Trans-Oceanic Life Insurance Company (TOLIC) (San Juan, PR) The outlook for the ratings is stable.
The rating upgrade reflects TOLIC’s leading market position in the individual supplemental health and accident program in Puerto Rico, its steady and sustainable statutory net operating gains and its more than adequate level of risk-adjusted capitalization, which is supported by its positive organic earnings stream and conservative investment portfolio. TOLIC’s core business focus remains with an offering of a diversified portfolio of individual supplemental health insurance products and generating modest sales of individual life, annuity and credit life in the Puerto Rico marketplace. In addition, TOLIC anticipates diversifying its life and health insurance operations in select segments of the Florida market, as well as pursuing business segments of the government and private sectors of Puerto Rico.
Partially offsetting these positive rating factors are TOLIC’s high dependency on its individual accident and health segment to sustain growth and profitability, continuing competition from other well established life and health insurers in the Puerto Rico markets and the inherent volatility in the individual accident and health line of business.
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