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A.M. Best Downgrades Credit Ratings of INTEGRAND Assurance Company; Places Credit Ratings Under Review With Negative Implications

November 29, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Nov 29, 2018--A.M. Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “bbb+” from “a-” of INTEGRAND Assurance Company (INTEGRAND) (San Juan, Puerto Rico). Additionally, A.M. Best has placed these Credit Ratings (ratings) under review with negative implications.

The rating downgrades reflect A.M Best’s assessment of INTEGRAND’s balance sheet strength, which A.M. Best categorizes as very strong, its adequate operating performance, limited business profile and marginal enterprise risk management (ERM). These rating actions follow the company’s recently filed third-quarter statutory statement, which reflects a sizable decline in policyholder surplus due to adverse development on Hurricane Maria and Irma losses of approximately $15 million. As noted, A.M. Best has revised the assessment of INTEGRAND’s ERM, which A.M. Best now categorizes as marginal. The assessment downgrade was driven by the size of the additional catastrophe losses relative to amounts previously disclosed to A.M. Best, which creates uncertainty regarding the company’s ERM program.

Additionally, while the rate of new claims associated with Hurricane Maria and Irma has slowed more recently, the potential for additional development remains an ongoing concern. Furthermore, the company has considerable exposure to reinsurance recoverables, which exposes capital to potential dispute risk and could potentially change A.M. Best’s current assessment of capital. Accordingly, these ratings will remain under review pending A.M. Best’s analysis of the company’s business plans.

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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181129005572/en/

CONTACT: Brian O’Larte

Director

+1 908 439 2200, ext. 5138

brian.o’larte@ambest.comRichard Attanasio

Senior Director

+1 908 439 2200, ext. 5432

richard.attanasio@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 11/29/2018 11:55 AM/DISC: 11/29/2018 11:55 AM

http://www.businesswire.com/news/home/20181129005572/en

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