OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb” (Fair) from “bbb-” (Good) of Triple-S Blue. Inc., I.I. (TSB) (Puerto Rico). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect TSB’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The ratings downgrade follows the completed sale of TSB’s Costa Rica asset in early May 2022. TSB still maintains business in the British Virgin Island and Anguilla. Furthermore, the ratings also reflect a reduction in rating enhancement, due to the impact of reduced strategic importance of this entity to Triple-S and its ultimate parent, GuideWell Mutual Holding Corporation (GuideWell). AM Best views the strategic position of TSB within the broader GuideWell concern to be diminished due to the sale of the assets of the Costa Rica business of TSB. TSB’s business profile remains limited as a majority of the company’s accident and health business generated from Costa Rica has now been sold.
Given the reported gain from the sale of the assets, TSB’s absolute capital and surplus may improve, and help stabilize the volatility experienced by this entity from the historic losses reported. The revision of the TSB’s outlook to stable is attributed to AM Best’s expectation of strengthened risk-adjusted capitalization and material improvement in underwriting leverage in 2022 and assumes that capital will not be removed from this entity.
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