OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Triple-S Propiedad, Inc. (Guaynabo, Puerto Rico).
The Credit Rating (rating) action follows the company’s recently announced significant decline in policyholder surplus. The decline was driven by adverse development on losses from Hurricane Maria of approximately $76.4 million ($47.5 million after-tax). As a result of the increased losses, claims from Hurricane Maria subsequently exceeded the company’s available reinsurance protection. The magnitude of the additional losses relative to amounts previously disclosed to A.M. Best earlier this year drives further uncertainty regarding the effectiveness of the company’s enterprise risk management program. While the company has a number of initiatives under consideration to bolster capital, including support from the parent company, Triple-S Management Corporation, the ultimate adequacy of these initiatives is uncertain. Accordingly, the ratings will remain under review pending A.M. Best's analysis of the company’s business plans.
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