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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 15, 2010 12:00 AM (EST)
A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of "bbb+" of Best Meridian Insurance Company (BMIC). Concurrently, A.M. Best has revised the outlook to positive from stable for the ICR of "bbb" of Best Meridian International Insurance Company SPC (BMIIC) (Grand Cayman, Cayman Island). Additionally, A.M. Best has affirmed the ICR and the FSR of B++ (Good) of BMIIC. The outlook for the FSR is stable. BMIC and BMIIC are life insurance subsidiaries of BMI Financial Group, Inc. (BMIFG), a privately held holding company. All companies are domiciled in Coral Gables, FL, unless otherwise specified.
These rating actions recognize BMIC and BMIIC's favorable risk-adjusted capitalization, well established marketing presence and cultural knowledge of their Latin American markets, trend of profitable operating results in their core lines of business and steadily increasing new business premiums. BMIC and BMIIC offer a portfolio of life/health product offerings to high net worth individuals and small business groups in more than a dozen Latin American countries.
The positive outlook reflects A.M. Best's view that BMIC and BMIIC will be able to continue to sustain profitable growth in their geographically diverse Latin American markets. With a long established presence in their core target markets, both BMIC and BMIIC remain competitively well positioned. In addition, the companies' growing network of agents, third party administrators and stringent underwriting allow for profitable growth opportunities within their Hispanic target markets.
Partially offsetting these factors are the companies' business concentration risk in their individual accident and health segment, exposure to business risk in certain Latin American countries and the limited financial flexibility of their ultimate parent company. Given its limited access to capital, it is necessary for BMIFG to generate capital growth organically, and any positive rating movement is dependent on the continuation of strong capital measures.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.