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 continued excellent operating results,
favorable capitalization and strong business profile. ASSA maintains a
well diversified book of business that includes both property/casualty
and life/health products. ASSA is ultimately owned by Grupo ASSA, S.A.
(Grupo ASSA), a publicly traded financial services holding company on
the Panama stock exchange.
ASSA has shown disciplined underwriting in a highly competitive market,
while its risk-based capitalization remains fully supportive of the
current ratings and outlook. ASSA’s underwriting profitability is
complemented by consistent levels of investment income, which has
enabled the company to steadily appreciate surplus while still providing
Grupo ASSA with dividend payments. ASSA also benefits from established
risk management systems and strong reinsurance programs across most
lines of business.
Partially offsetting these positive rating factors is ASSA’s risk
concentration in a geographically limited insurance market along with
operating in a country, which A.M. Best considers to have an elevated
level of country risk. Additionally, the Panamanian insurance market is
becoming increasingly competitive as local and large outside insurers
continue to vie for market share.
Positive rating actions could occur if ASSA maintains its consistently
strong underwriting performance and long-term profitability in
conjunction with an upgrade in Panama’s country risk tier. Negative
rating triggers could include a significant decline in the company’s
risk-based capitalization, sustained adverse operating performance or a
downgrade in Panama’s country risk tier.
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 BCAR for Property/Casualty Insurers”; “Understanding
Universal BCAR”; “Catastrophe Analysis in A.M. Best Ratings”; and
“Assessing Country Risk.” Best’s Credit Rating Methodology can be found
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.
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Source: A.M. Best Co.