Skip to main content

AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of One Alliance Insurance Corporation

AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb+” (Fair) of One Alliance Insurance Corporation (One Alliance) (San Juan, Puerto Rico). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is negative.

The Credit Ratings (ratings) reflect One Alliance’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.

The negative outlook on the Long-Term ICR reflects One Alliance’s weakened balance sheet strength. This is the result of the company’s aggressive growth strategy implemented in 2022, which resulted in increased underwriting leverage metrics, reinsurance dependence and overall decrease in its risk-adjusted capitalization. In addition, policyholder surplus has considerable exposure to weather-related events, which is intensified by higher reinsurance costs and increased retention levels. However, One Alliance’s capital adequacy is expected to improve starting in 2023, due to a $2 million capital contribution in first-quarter 2023, as well as the scaling back on its growth strategy with continued focus on profitability. Operating performance has improved over the last few years and this trend has continued through the first months in 2023. Management is expected to execute on its plans over the near term.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Data & News supplied by
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.