A.M. Best Affirms Ratings of ASSA Compania de Seguros, S.A.
OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of ASSA Compania de Seguros, S.A. (ASSA) (Panama City, Panama). The outlook for both ratings is stable.
The ratings reflect ASSA’s excellent capitalization, favorable operating results and strong presence in the Panama market. ASSA provides a diversified product mix of both property/casualty and life/health products targeting local markets. The company’s current business mix is approximately 60% property/casualty and 40% life/health.
Each operating segment benefits form the company’s established risk management systems and procedures, along with strong reinsurance programs for most lines of business. As a result, ASSA’s combined ratio (including both segments) averaged 87% over the past five years, while risk-based capitalization remains fully supportive of the current ratings and outlook.
ASSA is ultimately owned by Grupo ASSA, S.A. (Grupo ASSA), a publicly traded holding company on the Panama stock exchange. Grupo ASSA’s other major holdings include La Hipotecaria Inc., a mortgage company in Panama, and Banco de Finanzas, S.A., a bank in Nicaragua. Grupo ASSA’s complementary holdings offer ASSA opportunities for cross selling, strategic partnerships and expansion into other areas of Central America.
Partially offsetting these positive factors is ASSA’s risk concentration in a geographically limited insurance market, along with operating in a country that A.M. Best considers to have an elevated level of country risk. Furthermore, Grupo ASSA’s financial and banking subsidiaries in the region also operate in countries considered to have elevated levels of country risk, which presents an added element of risk to the total enterprise. A.M. Best is concerned that potential underperformance or issues at Grupo ASSA’s subsidiaries could potentially increase dividend demands at ASSA.
For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
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
Peter Dickey, 908-439-2200, ext. 5053
[email protected]
or
Robert DeRose, 908-439-2200, ext. 5453
[email protected]
or
Public Relations
Rachelle Morrow,908-439-2200, ext. 5378
[email protected]
or
Jim Peavy,908-439-2200, ext. 5644
[email protected]
Source: A.M. Best Co.
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