AM Best Places Best Meridian Insurance Company and Best International Meridian SPC Insurance Company credit ratings are under review with negative implications

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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best has placed under review with negative implications the financial strength rating of A- (Excellent) and the long-term credit ratings of issuers of “a-” (Excellent) from Best Meridian Insurance Company (BMIC) (Miami, FL) and Best Meridian International Insurance Company (BMIIC) (Grand Cayman, Cayman Islands).

This credit rating measure (rating) follows BMIC’s first quarter 2021 and late 2020 results, which signaled a deterioration in its directly issued mortgage holdings. While the organization has a successful history of profitable returns on its mortgage portfolio, properties are concentrated in Florida, which experienced a significant economic downturn in 2020 due to the COVID-19 outbreak. Additionally, while BMIIC has contracted measures in place to reduce the risk of counterparty litigation and non-performance, AM Best remains concerned about the increase in reinsurance receivables, including much higher counterparty balances. unrated to BMIIC associated with its relatively new property and casualty reinsurance business. . Based on these aspects, there is a potential for the consolidated capital adequacy ratio score of Best to deteriorate at the end of 2020 to a level that no longer supports the current assessment of balance sheet strength. The ratings will remain under review pending the filing by BMIIC of its audited GAAP financial statements for the end of 2020, AM Best’s further discussions with management regarding these financial results and until 2021 as well. than the expected growth of the Company’s property and casualty reinsurance business.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best Recent rating activity Web page. For more information regarding the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the appropriate media use of Best’s credit ratings and AM Best press releases, please see Media Guide – Appropriate Use of Best Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 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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