The ratings reflect Maxseguros’ strong risk-adjusted capitalization, supported by a comprehensive and adequate reinsurance program, history of consistently strong operating performance, sound risk management capabilities and conservative balance sheet strategies. The ratings also recognize the support of its parent, Empresas Publicas de
These positive rating factors are partially offset by Maxseguros’ limited business and market scope, which is somewhat mitigated by the company’s stable loss history, favorable geographic spread of risk and the history of Maxseguros’ growing surplus position and the support of its ultimate parent, EPM. Additionally, while Maxseguros depends on reinsurance, EPM’s senior management is intimately involved in the captive’s operations.
Over the past five years, surplus has grown from
Positive rating triggers could include sustained positive operating results and improved risk-adjusted capitalization.
Negative rating impact could occur if underwriting performance declines or demonstrates volatility that negatively impacts earnings and capitalization over time. Negative rating impact could also occur if there is a material shift in risk profile that could potentially undermine the stability and profitability of the company, or if financial issues arise and place pressure on the ratings or the parent’s credit profile.
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