OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with negative implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of One Alliance Insurance Corporation (One Alliance) (San Juan, Puerto Rico).
The Credit Rating (rating) actions are driven by the uncertainty surrounding a previously planned capital contribution. In addition, the level of transparency regarding the reasoning for the delay adds to A.M. Best’s concerns regarding ownership’s willingness to support future anticipated growth. While One Alliance currently has adequate risk-adjusted capitalization for the rating level, the anticipated capital contribution was in support of significant planned growth in future years. The ratings will remain under review pending the execution of the capital contribution, currently expected to be completed on or before March 30, 2018, as well as A.M. Best’s analytical review of the business plan. As indicated by the negative implications, in the absence of additional capital and/or a revised business plan, the ratings likely will be downgraded.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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