A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of Triple-S Propiedad, Inc. (TSP) (San Juan, PR). The outlook for both ratings is stable.
The ratings reflect TSP’s excellent capitalization, favorable operating profitability and well-established market presence within Puerto Rico. While profitable operating results have been driven primarily by solid investment income, the results have benefitted from favorable reserve development occurring on both an accident and calendar year basis.
Partially offsetting these positive rating factors are TSP’s geographic concentration of risk, competitive operating environment in which it operates and its above average underwriting expense ratio. While the underwriting expense ratio reflects the high commission costs; the ratio remains in line with TSP’s local market peers. With all business written in Puerto Rico, the company remains exposed to frequent and severe weather-related events, as well as judicial and regulatory concerns.
On July 27, 2010, A.M. Best affirmed the FSR of B++ (Good) and ICRs of “bbb+” of Triple-S Salud, Inc. and Triple-S Vida, Inc. , as well as the ICR of “bb+” of their holding company, Triple-S Management Corporation (TSM) [NYSE: GTS]. The outlook for these ratings is stable. All companies are domiciled in San Juan, PR.The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “ Rating Members of Insurance Groups”; “Assessing Country Risk”; “Natural Catastrophe Stress Test Methodology”; and “ A.M. Best’s Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.