Insurance ratings agency A.M. Best on Wednesday revised its outlook on Cooperativa de Seguros de Vida de Puerto Rico (known as Cosvi for its acronym in Spanish), to positive from stable and affirmed the company’s financial strength rating of B- (Fair) and issuer credit rating of “bb-.”
The 50-year-old life insurance company owned by cooperative organizations in Puerto Rico has reflected improved operating results, risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio and a strategic shift to stable and profitable lines of business, A.M. Best noted as reasons for its positive opinion.
This year Cosvi has improved its bottom line and risk-adjusted capitalization through positive net gains associated with the sale of its unprofitable group health plan and Medicare Advantage lines of business.
“However, residual losses from the run off of these businesses continue to impact the current year’s operating results,” A.M. Best said, adding that “the combined results of COSVI’s remaining lines of business, including life, annuities, credit life and individual accident and health, produced favorable statutory operating gains in the most recent period and increasing positive results are projected going forward.”
Another plus, A.M. Best said, is the willingness of COSVI’s members to support the entity’s financial flexibility.
Business reporter with 30 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other segments of Puerto Rico’s economy.
“This project not only represents a significant investment in our island’s tourism infrastructure, but also symbolizes Puerto Rico’s ability to attract and execute large-scale projects.
The Investment Portfolio Program, with a budget of $800 million, plays a crucial role in offering loans with favorable terms for the development of projects that have the potential to transform the Puerto Rican economy.”
— Puerto Rico Housing Secretary William Rodríguez regarding the construction of a $77 million dual-branded hotel project in San Juan’s Convention Center District, featuring Hilton’s Hampton and Homewood Suites.
The project by PRISA Group includes a 400-vehicle parking structure and a 175,000-square-foot hotel tower, financed by Banco Popular and a $10 million federal disaster recovery loan from the Economic Development Investment Portfolio Program managed by the Department of Housing.