OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has assigned a financial strength rating of A-
(Excellent) and issuer credit rating of “a-” to Aseguradora Ancon,
S.A. (Ancon) (Panama). The outlook assigned to both ratings is
The ratings reflect Ancon’s adequate capitalization and liquid position,
favorable operating performance, strong reinsurance protection and
explicit parental support. Partly offsetting these positive rating
factors is the company’s geographic concentration, which subjects it to
regulatory and economic risk. Additionally, Ancon’s ratings reflect the
country risk associated with its operation in Panama.
Ancon operates as the fifth-largest insurer in Panama, underwriting a
diversified product mix targeting the local market. The company writes
life insurance lines, health insurance, automobile, property/casualty
and surety bonds. Property/casualty lines account for approximately 80%
of Ancon’s gross written premiums. The company only writes business in
Panama and has nine offices located throughout the country. Ancon works
with independent agents, brokers and direct writers.
Ancon maintains an adequate level of risk-adjusted capitalization as
measured by Best’s Capital Adequacy Ratio (BCAR), which is exposed to
major losses arising from its commercial property portfolio. However,
the risk is tempered by a strong reinsurance program that is placed with
highly rated reinsurers.
In 2011, Ancon purchased 100% of the shares of Multinational
Insurance Company (MIC), a property/casualty insurer domiciled in
Puerto Rico. MIC owns 96.6% of the shares of Multinational Life
Insurance Company, also domiciled in Puerto Rico.
Factors that could lead to a positive outlook or an upgrading of Ancon’s
ratings are sustainable long-term improvement in underwriting
performance and reduced overall net exposure.
Factors that could lead to a negative outlook or a downgrading of the
company’s ratings are a material deterioration of capital from either
lower than expected operating performance or claims due to a large
catastrophic event, a reduced level of capital that does not support the
ratings or an increase in net retention.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a
comprehensive explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Key criteria
utilized include: “Risk Management and the Rating Process for Insurance
Companies”; “Understanding Universal BCAR”; “Evaluating Country Risk”;
“Catastrophe Analysis in A.M. Best Ratings”; and “Rating Members of
Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Co.Janet HernandezSenior
Financial Analyst908-439-2200, ext. email@example.comRachelle
MorrowSenior Manager, Public Relations908-439-2200,
Chirico, CPAAssistant Vice President908-439-2200,
PeavyAssistant Vice President, Public Relations908-439-2200,
Source: A.M. Best Co.