AM Best Revises Issuer Credit Rating Outlook to Stable for Bupa Insurance Company

AM Best has revised the outlook for the Long-Term Issuer Credit Rating (Long-Term ICR) to stable from negative and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of Bupa Insurance Company (BIC) (Palmetto Bay, FL). The outlook of the FSR is stable.

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

The revision of the Long-Term ICR outlook to stable from negative reflects the reduced pressure on BIC from the sale of BUPA México, Compañía de Seguros, S.A. de C.V. (BUPA Mexico) to an affiliated company, BUPA Global Holding Limited, which occurred in the first quarter of 2023. The divestiture eliminated uncertainty surrounding the potential capital strain attributable to BUPA Mexico that had been associated with this entity in the past.

BIC’s balance sheet strength remains assessed as strongest. The company’s assessed level of risk-adjusted capitalization at year-end 2022, as measured by Best’s Capital Adequacy Ratio (BCAR), was very strong, which represents a downward revision from strongest in the prior year. However, the BCAR is projected to improve in 2023 and return to the strongest level. The company has a conservative investment portfolio, composed of fixed-income securities and cash and short-term deposits. Additionally, the company benefits from the implicit and explicit support of its ultimate parent organization, The British United Provident Association Limited (BUPA). AM Best expects the parent to provide financial support to BIC should it be necessary.

BIC has experienced a trend of improving operating performance over the last three years and through the second quarter of 2023 owing to underwriting income in its international private medical insurance business and net investment income.

Partially offsetting factors include the company’s premium concentration in the highly competitive international private medical insurance market in Latin America, where it is exposed to the challenges of the volatile regulatory, economic and political environments of the countries within this region.

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

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