The ratings reflect Ancón’s improved underwriting metrics and bottom-line results, which are supported by a well-structured reinsurance program that covers its different business lines, which has allowed the company to maintain adequate risk-adjusted capitalization for its current rating level. Offsetting these positive rating factors are the marginal growth of the
Ancón is the seventh-largest insurer in
In 2015, the company adjusted its underwriting strategy in order to improve its profitability, and as a result, ceded premium increased, particularly for its auto business. This allowed for retained reserve releases, improved acquisition costs and lower claims that ultimately resulted in an improvement in its combined ratio, to 96.9% from 104.4% in the previous year. Such change is supported by a comprehensive reinsurance program set with highly rated reinsurers.
Risk-adjusted capitalization for the company remains adequate for its current rating level. Its capital base was strengthened further in 2015 by a capital contribution of
The insurance market in
Positive movement in Ancón’s ratings or outlook could take place if the company continues to implement its strategy in a profitable manner, while continuing to be supported by a strong reinsurance program and stable levels of risk adjusted capitalization. Negative rating actions could occur if the company’s operating results present a negative trend of sustained losses that affect its capitalization or business profile.
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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Analyzing Insurance Holding Company Liquidity (Version
March 25, 2013)
- Evaluating Non-Insurance Ultimate Parents (Version
Feb. 24, 2012)
- Evaluating Country Risk (Version
May 02, 2012)
Insurance Holding Companyand Debt Ratings (Version May 06, 2014)
- Ratings Members of Insurance Groups (Version
Dec. 15, 2014)
- Rating Surety Companies (Version
Aug. 13, 2014)
- Risk Management and the Rating Process for Insurance Companies (Version
April 02, 2013)
- Understanding Universal BCAR (Version
April 28, 2016)
View a general description of the policies and procedures used to determine credit ratings. Also in accordance with Mexican regulations, the following is a link to required disclosures – A.M. Best America Latina Supplementary Disclosure. For information on the structure, voting and the committee process for determining the ratings and monitoring activities please refer to “Understanding Best’s Credit Ratings.”
- Previous Rating Date:
Aug. 5, 2015.
- Date of Financial Data Used:
June 30, 2016.
This press release relates to rating(s) that have been published on
While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed.
A.M. Best’s credit ratings are independent and objective opinions, not statements of fact.
Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
Elí Sánchez, +52 55 1102 2720, ext. 108
Senior Financial Analyst
Manager, Public Relations
Assistant Vice President, Public Relations