A.M. Best Downgrades Credit Ratings of Antilles Insurance Company
The ratings reflect Antilles’ balance sheet strength, which
The rating actions reflect a significant decline in Antilles’ policyholders’ surplus, primarily driven by substantial stockholder dividends, unrealized capital losses in 2014 and 2015 and deterioration in underwriting performance in the most recent years. The deterioration in underwriting results was largely due to the company’s high underwriting expense structure, along with a significant decline in its premium volume. The reduction in premium volume was driven by a reduced assumption percentage on its reinsurance agreement for the
To counter the loss of the compulsory auto book of business, Antilles has developed a new dwelling product that will be distributed mainly through independent agencies as opposed to the current bank-owned agencies. Currently, the vast majority of dwelling business in
There may be additional negative rating action if there is further decline in operating results, or a material weakening in Antilles’ risk-adjusted capitalization. Additional contraction in policyholders’ surplus or if the new dwelling book of business fails to improve underwriting performance also would create negative rating pressure. Positive rating action, most likely in the form of an outlook revision to stable, could occur if underwriting and operating performance stabilizes in the near term.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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