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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 28, 2011 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and issuer credit rating (ICR) to "a-" from "bbb+" of Best Meridian Insurance Company (BMIC). Concurrently, A.M. Best has upgraded the ICR to "bbb+" from "bbb" and affirmed the FSR of B++ (Good) of Best Meridian International Insurance Company SPC (BMIIC) (Grand Cayman, Cayman Islands). The outlook for all ratings has been revised to stable from positive, except for the outlook on the FSR of BMIIC, which 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 Miami, FL, unless otherwise specified.
These rating actions recognize BMIC and BMIIC's stable and consistent trends of profitable operating results in their core lines of business, increasing new business premiums and well-established marketing presence, good risk-adjusted capitalization and cultural knowledge of and relationships within the Latin American markets. BMIC and BMIIC offer portfolios of life/health products to high net worth individuals and small business groups in more than a dozen Latin American countries.
A.M. Best expects BMIC and BMIIC 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 to capture organic growth. In addition, these companies' growing network of agents, third party administrators and stringent underwriting allow for profitable growth opportunities within their Hispanic target markets.
Partially offsetting these positive rating factors are the companies' business concentration risk in their individual accident and health segments, exposure to business risks in certain Latin American countries and the limited financial flexibility of BMIFG. Given BMIFG's limited access to capital, it is necessary to continue to generate capital growth organically and maintain strong capital measures.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Life and Health Insurers"; "Understanding Universal BCAR"; "Rating Members of Insurance Groups"; "Assessing Country Risk"; and "A.M. Best's Ratings & the Treatment of Debt." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.