Best Meridian Insurance Company and Best Meridian International Insurance Company SPC AM Best Places Credit Ratings Under Review With Negative Implications

OLDWICK, NJ, March 11, 2022–(BUSINESS WIRE)–AM Best placed under review with negative implications the financial strength rating of A- (Excellent) and the issuers’ long-term credit ratings of “a-” (Excellent) from Best Meridian Insurance Company (BMIC) (Miami, FL) and Best Meridian International SPC Insurance Company (BMIIC) (Grand Cayman, Cayman Islands).

This credit metric reflects AM Best’s concerns about the reported decline in capital and surplus at BMIC and its growth in reinsurance recoverable balances, including reliance on unrated counterparties at BMIIC, which are become a large part of the organization’s long-term operational strategy. BMIC’s capital and surplus fell precipitously in 2021, primarily due to COVID-19 related claims in the accident and health lines of business and followed by higher mortality in its individual life business . Based on these aspects, there is a high risk that the companies’ 2021 Consolidated Best Capital Adequacy Ratio score may deteriorate to a level that no longer supports the assessment of the strength of the current consolidated balance sheet. The ratings will remain under review pending BMIIC’s filing of its audited GAAP financial statements for the end of 2021 and further discussions with the management team regarding the financial results and the structure of the developments of the partnership. reinsurance.

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 relevant 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 more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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wayne kaminski
Senior Financial Analyst
+1 908 439 2200 ext. 5061
wayne.kaminski@ambest.com

Doniella Pliss
Director
+1 908 439 2200 ext. 5104
doniella.pliss@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200 ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200 ext. 5644
james.peavy@ambest.com


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Justin D. O'Neill