AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Òptima Seguros
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 12, 2019--
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of Òptima Seguros (San Juan, PR). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Òptima Seguros’ balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
These rating actions follow QBE Insurance Group Limited’s (QBE) recently finalized sale of its wholly owned subsidiary, QBE Seguros, to Grupo Óptima, Inc., a private investor group. The balance sheet strength assessment considers the change in ownership and the return of capital previously provided by QBE in order to satisfy regulatory capital post Hurricane Maria. This assessment also considers the reinsurance collateral supporting these liabilities and the quality of the company’s new reinsurance program, which was designed specifically for its new business profile. The operating performance assessment considers the company’s renewed emphasis on small to medium commercial enterprises, plans to further develop its former agency relationships, and management’s ability to successfully execute on its plans and strategy in the upcoming years. The business profile assessment considers the company’s limited geographic profile (only Puerto Rico), as well as some of the competitive headwinds in an already saturated and mature market. In addition to adopting some of the company’s pre-existing risk management practices under QBE, management has established its own ERM framework as part of setting specific risk tolerances and risk appetites designed around the company’s new business plan.
This press release relates to Credit Ratings that have been published on AM 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 AM 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 11/12/2019 03:08 PM/DISC: 11/12/2019 03:08 PM