AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “ccc+” (Weak) from “ccc” (Weak) and affirmed the Financial Strength Rating (FSR) of C (Weak) of Cooperativa de Seguros de Vida de Puerto Rico (COSVI) (San Juan, Puerto Rico). The outlook of the Long-Term ICR has been revised to stable from positive. The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect COSVI’s balance sheet strength, which AM Best assesses as very weak, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The upgrade of the Long-Term ICR is associated with the continued significant improvement in the overall risk management process within the organization. Risk assessment principles have been integrated into the decision-making processes of working committees. The overall ERM program now possesses a more risk-aware culture utilizing additional advanced tools executing on strategy and company alignment with goals and objectives critical to the long-term success as part of the new chief risk officer hire. The insurer’s ERM framework seems to be more developed than ever before with proper risk management capabilities now existing that are well aligned with the company’s risk profile.
COSVI has delivered very good growing operating performance results lately, reflecting strong operational and investment performance. Continued increases in sales also were reported across some products exceeding strategic plans. Additionally, COSVI has had an ongoing improvement in the overall credit quality within its investment portfolio, along with gradually improving net yield.
COSVI’s absolute level of capital continued to increase as of year-end 2025, by another 23% compared with the prior year, mainly as a result of an operating income of $5.7 million. The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has remained at a very weak level. Unadjusted financial leverage remains just within AM Best’s tolerances, and quality of capital remains neutral to COSVI’s ratings. AM Best notes that COSVI also will need to demonstrate a continued trend of executing its capital management plan along with additional support by the shareholders before any potential upward movement in the balance sheet strength assessment is contemplated. AM Best will continue to monitor progress closely on all initiatives presented.
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.
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