A.M. Best Assigns Ratings to Popular Life Re.OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating of B++ (Very Good) and an issuer credit rating of "bbb" to Popular Life Re (San Juan, Puerto Rico San Juan (IPA: [saŋ hwaŋ]) (from the Spanish San Juan Bautista, "Saint John the Baptist") is the capital and largest municipality on Puerto Rico. ). All ratings have a stable outlook. Popular Life Re is a life reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. start-up company start-up company A new business. and is a subsidiary of Popular, Inc., a financial holding company. Banco Popular de Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , the largest commercial bank in Puerto Rico, is also an affiliate of Popular, Inc., as well as Banco Popular, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Banco Popular, N.A., Popular Insurance, Inc. and Popular Insurance USA, Inc. Popular Life Re commenced operations in March 2004, initially assuming credit related products underwritten by Caribbean American Life Assurance Co. and Caribbean American Property Insurance Co. Popular Life Re was initially capitalized with $18 million of equity capital; A.M. Best believes the risk-based capitalization will adequately support its planned new business activities over the next three-year period. Moreover, A.M. Best believes the company has access to capital should the need arise. The operations of Popular Life Re are built upon Popular Inc.'s existing insurance business whereby Popular Inc.'s credit business is sourced to many organizations in Puerto Rico and the United States The legal relationship between Puerto Rico and the United States has been described in a number of ways, ranging from "colonial possession" to "dual sovereigns." Technically speaking, Puerto Rico is a territory of the United States, subject to the plenary power of . Accordingly, A.M. Best believes Popular Life Re is well positioned to grow its credit related reinsurance business given the large number of organizations that currently have insurance related business with Popular Inc. Offsetting factors include the lack of scale, modest level of capital on an absolute basis and the uncertainties surrounding the successful execution of Popular Life Re's business plan. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings. For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit http://www.ambest.com/reinsurance/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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