OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Multinational Insurance Company (Multinational) (Hato Rey, Puerto Rico). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Multinational’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect rating enhancement from its parent company, Aseguradora Ancón, S.A.
The rating upgrades reflect a revision of Multinational’s operating performance assessment to strong from adequate. The company has reported stable results due to strategic initiatives, including revised underwriting guidelines and expense control measures, which have resulted in underwriting performance metrics that have outperformed the commercial casualty composite over the past five years. Results also have benefited from modest, but consistent, investment earnings and ongoing parental support. The company has reported a considerable increase in surplus to support premium growth.
AM Best assesses Multinational’s business profile as limited due to its geographic concentration in Puerto Rico, which exposes its results to weather-related events, competition and regulatory challenges. However, the company’s market position is supported by a solid and tenured management team. The company also benefits from an appropriate level of ERM, including a developed risk management framework and comprehensive reinsurance program.
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