CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 29, 2019 12:47 PM (EST)
AM Best has removed from under review with negative implications and downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to “a-” from “a” of MAPFRE Insurance Company of New York (MAPFRE NY) (Garden City, NY). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect MAPFRE NY’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The rating downgrades reflect MAPFRE NY’s new ownership structure, following the close of Plymouth Rock Assurance Corporation’s (PRAC) (Boston, MA) acquisition of MAPFRE NY on Jan. 1, 2019. MAPFRE NY’s very strong balance sheet is driven by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio. PRAC’s management intends to seek approval to add MAPFRE NY to its pooling agreement or implement quota share reinsurance during the first half of 2019, which should align MAPFRE NY’s operating performance metrics with the other members of Plymouth Rock Assurance Group. Additionally, MAPFRE NY will be brought under PRAC’s enterprise risk management and catastrophe reinsurance program.
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 pertinent 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 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 AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.