OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” to Elan Solutions, Inc. (ESI) (d/b/a United West Indies Insurance) (St. Thomas, U.S. Virgin Islands). The outlook assigned to these Credit Ratings (ratings) is stable.
ESI is a newly formed company operating in the U.S. Virgin Islands. It commenced business on Oct. 1, 2016, and primarily services group major medical business. The ratings reflect ESI’s business profile, projected premium and operating earnings growth and adequate level of risk-adjusted capital. The company’s management is experienced in the Caribbean basin and has brought in service support to administer its initial block of insured members while executing on its plan to grow and expand into other products or locales. Although absolute capital levels are expected to decline as premium grows, ESI is projected to maintain adequate levels of risk-adjusted capitalization through operating gains.
As with any start-up company, A.M. Best expects ESI to face challenges from market pressure and barriers to expand. Market challenges may include regulatory pressure, provider relationship strain, changing demographics affected by the overall dynamic of the marketplace and ESI’s ability to adapt and respond to market changes and implement improvements without disrupting operations.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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