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FOR IMMEDIATE RELEASE
OLDWICK - MARCH 11, 2022 02:05 PM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Best Meridian Insurance Company (BMIC) (Miami, FL) and Best Meridian International Insurance Company SPC (BMIIC) (Grand Cayman, Cayman Islands).
This Credit Rating action reflects AM Best’s concerns regarding the reported drop in capital and surplus at BMIC and its growth of reinsurance recoverables balances, including the reliance on unrated counterparties at BMIIC, which have become a large part of the organization’s long-term operating strategy. BMIC’s capital and surplus dropped precipitously in 2021, mainly driven by COVID-19 related claims in the accident and health lines of business and followed by higher mortality in its individual life business. Based on these aspects, there is an elevated potential for deterioration of the companies’ 2021 consolidated Best’s Capital Adequacy Ratio score to a level no longer supportive of the consolidated current balance sheet strength assessment. The ratings will remain under review pending BMIIC’s filing of its GAAP audited financial statements for year-end 2021 and further discussions with the management team regarding the financial results and the structure of reinsurance partnership developments.
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.