AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of Triple-S Propiedad, Inc.

AM Best has removed under review with positive implications and upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb” (Good) of Triple-S Propiedad, Inc. (TSP) (Guaynabo, PR). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect TSP’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

TSP’s balance sheet strength assessment is underpinned by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), despite the significant deterioration of policyholder surplus reported through the third quarter of 2023. The deterioration was driven by material reserve development related to Hurricane Maria claims. As a result of this, the ultimate parent, GuideWell Mutual Holding Corporation (GuideWell), implemented a capital management strategy that included a capital contribution, a loss portfolio transfer (LPT) and overall support of TSP’s ERM program.

AM Best views TSP’s operating performance as adequate based on its historically profitable results, except for 2018 and 2023, when the company reported adverse reserve development related to Hurricane Maria. As a result, the company’s combined ratio in those two years was significantly higher than the results reported from 2019 through 2022. TSP’s business profile is viewed as limited due to its geographic concentration of risk in Puerto Rico. The company’s ERM is marginal given the weakness observed despite strengthening efforts implemented in previous years.

The rating upgrade is the result of including lift from GuideWell’s explicit commitment to support TSP, as demonstrated with the most recent capital contribution and the LPT transfer executed in 2023.

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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