2008-08-05 23:38:03 -

www.ambest.com - A.M. Best Co. has revised the rating outlook to stable from negative and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Seguros Triple-S, Inc. (STS) (San Juan, PR)

The ratings reflect STS' solid capitalization, consistent favorable operating performance and well established market presence in Puerto Rico. Favorable operating earnings have contributed to surplus appreciation during the latest five-year period. These favorable operating results primarily are due to a consistent stream of investment income and, to a lesser extent, net underwriting income.

Partially offsetting the positive rating factors is STS' geographic concentration. As a Puerto Rico insurance provider, the company is exposed to catastrophic loss accumulation due to frequent and

severe weather-related events as well as judicial, regulatory and economic concerns.

STS maintains a solid reinsurance program with prominent reinsurers to reduce its maximum losses to a manageable level and protect policyholder surplus. Furthermore, the Puerto Rico insurance market has become increasingly competitive as insurers challenge each other to gain market share.

The negative outlook was assigned two years ago due to A.M. Best's overall concerns regarding issues pertaining to the organization, particularly at the holding company and at STS' sister companies, which could potentially impact STS. Currently, these issues have not adversely impacted the financial strength or operating performance of STS.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Co.
Analysts:
Sharon Summa, 908-439-2200, ext. 5510
sharon.summa@ambest.com
or
Joseph Burtone, 908-439-2200, ext. 5125
joseph.burtone@ambest.com
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com