AM Best Affirms Credit Ratings of Popular Life Re
2024年5月8日 - 11:27PM
ビジネスワイヤ(英語)
AM Best has affirmed the Financial Strength Rating of B++
(Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of
Popular Life Re (PLRe) (Puerto Rico). PLRe is a life reinsurance
subsidiary of its ultimate parent, Popular, Inc. [NASDAQ: BPOP], a
publicly traded bank holding company based in Puerto Rico. The
outlook of these Credit Ratings (ratings) is stable.
The ratings reflect PLRe’s balance sheet strength, which AM Best
assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management. The weak credit profile of ultimate parent,
Popular, Inc., continues to have a drag on the ratings lift/drag
reflected in PLRe’s ratings.
PLRe’s balance sheet strength is driven by the strongest
assessment, as measured by Best’s Capital Adequacy Ratio (BCAR), as
well as a high quality and highly marketable investment portfolio,
which lends to a strong liquidity position. PLRe remains
strategically important to Popular, Inc., although the earnings
contribution to the parent company is modest. Additionally, the
company reinsures a portion of credit insurance policies on
consumer loans that originated at Banco Popular de Puerto Rico, as
well as personal accident and health policies underwritten by
unaffiliated insurers.
The company’s limited business profile offsets the favorable
rating factors. One of the primary attributes of the business is
the company’s limited geographic profile as it primarily operates
in Puerto Rico. There also is a heavy reliance on sourcing business
through its parent company, Popular, Inc., and its banking
relationships. In 2023, PLRe’s business profile expanded through a
new reinsurance treaty with a local insurer, and the company has
introduced new online offerings of a new guaranteed life insurance
product and a personal accident insurance program, both issued by
an existing ceding company. These are strategies designed to grow
new business.
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. For more information,
visit www.ambest.com.
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