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 for MAPFRE Insurance Company of New York, based in Garden City, N.Y. The outlook assigned to these Credit 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 Boston, Mass.-based Plymouth Rock Assurance Corporation’s (PRAC) 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.
Source: AM Best
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