INS Gets A- Rating from AM Best

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The Oldwick, N.J., international rating company A. M. Best has assigned a rating of A- (excellent) to the government-owned Costa Rican insurance company National Insurance Institute (INS).

The insurance company (a former monopoly) also received an issuer credit rating of A-. The outlook assigned both rating is stable.

An A.M. Best press release commented, "The ratings also reflect INS strong capitalization and liquidity position, diversified operating strategy, its position as main insurer in Costa Rica and favorable operating profitability. The ratings also also consider the explicit support INS receives from the government of Costa Rica, its parent."

The rating is also based on INS's solid reinsurance program with highly-rated international re-insurers, the company continued.

The A.M. Best review was offset slightly by other factors. "These strengths are partially offset by INS' relatively high loss and indemnity writing and expense ratios compared to other insurers in the region. Additionally. INS investment portfolio is heavily concentrated in government- and bank-issued securities. Nevertheless, the portfolio is composed of high credit quality securities and generates significant income for INS."

The outlook is based on the basis of continued sustained strong capitalization and operating performance. INS underwrites life and health insurance, automobile, casualty/property, surety bonds, and compulsory insurance, including compulsory workers compensation and auto insurance, as well as comprehensive local crop insurance.

Property/casualty insurance makes up most of the written premiums. But the insurance regulating agency in the county, SUGESE, authorizes INS to write 160 products (as of late 2010), including even pet insurance.

A.M. Best is one of the leading rating agencies of alternative risk entities, rating more than 200 such in the United States and throughout the world..