Best’s News & Research Service – March 01, 2022 02:38 PM (EST)
Oldwick //BestWire// – AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Cooperativa de Seguros Multiples de Puerto Rico (CSM) (San Juan, PR).
The ratings reflect CSM’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).
The revision of the outlooks to positive for CSM follows management actions taken to improve the ERM capabilities, which AM Best expects to continue over the near term. The improved practices include increasing reinsurance protection for tail events and implementing more-stringent underwriting standards and claims procedures, as well as exposure management initiatives. These improvements, together with CSM’s demonstrated ongoing commitment and investment to strengthening its ERM program, are expected to continue to enhance its ability to manage risks across the organization better, and more-closely align capabilities with CSM’s risk profile.
The ERM assessment previously was revised to marginal as the result of a significant surplus loss, driven by adverse reserve development on losses related to Hurricane Maria, which demonstrated weakness in the alignment of the ERM framework with the company’s risk profile.
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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.