OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Antilles Insurance Company (Antilles) (San Juan, PR).
The Credit Ratings (ratings) reflect Antilles’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The rating actions reflect a stabilization in Antilles’ operating performance over the most recent years, largely driven by substantial improvement in underwriting performance. This is due primarily to significant premium growth derived from sizable rate increases in the commercial lines segment and continued growth in the company’s new dwelling product. Additionally, the company’s stable outlooks are driven by the overall improvement in the commercial marketplace in Puerto Rico, largely due to improved rates and tighter terms and conditions.
Antilles’ balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), reflective of its stable loss reserving trends and its comprehensive reinsurance program, which was tested successfully in 2017, as well as its prudent investment risk profile.
Antilles’ business profile is limited due to its geographical concentration in Puerto Rico, which exposes results to weather-related events and regulatory challenges. However, the company’s market position is supported by a solid and tenured management team with a long-standing track record. The company also benefits from appropriate ERM, including a developed risk management framework and comprehensive reinsurance program.
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