OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating of B++ (Good)
and the Long-Term Issuer Credit Rating of “bbb” of Popular Life Re
(PLRE) (Puerto Rico). PLRE is a life insurance subsidiary of its
ultimate parent, Popular, Inc. [NASDAQ: BPOP], a publicly traded bank
holding company based in Puerto Rico. The outlook of these Credit
Ratings (ratings) is stable.
The ratings reflect PLRE’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
The ratings also reflect PLRE’s stable liability profile, strong return
metrics and invested assets, which are of excellent credit quality and
highly liquid. PLRE is projecting positive operating performance growth
over the next several years. PLRE remains strategically important to
Popular, Inc., although the earnings contribution to the parent company
is modest. Additionally, the company reinsures a portion of credit
insurance policies on consumer loans originated at Banco Popular de
Puerto Rico, as well as personal accident and health policies
underwritten by unaffiliated insurers.
Partially mitigating rating factors include declining premium growth and
geographic and product concentration risk, as credit life and accident
and health business mostly is transacted in Puerto Rico, and challenges
associated with difficulties structurally and economically following the
natural disasters. Lastly, PLRE’s ratings reflect ratings drag from the
parent company, Popular, Inc.
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. Visit www.ambest.com
for more information.
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