Best’s News & Research Service - August 30, 2022 11:00 AM (EDT)
AM Best Revises Outlooks to Positive for Antilles Insurance Company
- August 30, 2022 11:00 AM (EDT)
Oldwick //BestWire// - AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Antilles Insurance Company (Antilles) (San Juan, PR).
These Credit Ratings (ratings) reflect Antille’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The outlook revisions to positive are based on AM Best’s expectation of Antilles’ continued favorable underwriting and operating performance over the intermediate term, 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). Antilles’ strategic initiatives and favorable pricing environment have resulted in underwriting performance metrics that have outperformed its peer group over the past five years despite its elevated expense ratio, which is largely driven by commission expense. The improved performance in recent years has resulted in considerable policyholder surplus gains over the period.
Antilles’ 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 its management team’s extensive domestic market expertise. 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.