KEY RATING DRIVERS
While the company's leverage metrics are slightly higher than the sector's local and regional averages, Fitch believes that these are adequate, as the pressure on capital is generated by Mexican regulations, which call for ample provisioning.
The company's efficiency levels, measured through its operating (71.6%) and loss ratios (12.4%), have remained stable and competitive as of June '16, although results have been pressured by administrative expenses. Risk cumulus remain high but under control, representing 20% of the capital by surety bond, and 98% by group, although they are mitigated through reinsurance contracts.
With a five-year average of 50%, the proportion of
An improvement in
Date of Relevant Rating Committee:
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