A.M. Best Affirms Ratings of Reaseguradora Patria, S.A.B.
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 Reaseguradora Patria, S.A.B. (Patria Re) (Mexico). The outlook for both ratings is stable.
These rating actions reflect Patria Re’s favorable risk-adjusted capitalization, consistent underwriting performance in recent years and management’s local and regional market expertise. Patria Re is a reinsurer, mainly in the Mexican and Latin American markets and is focused on the prudent management of its underwriting risk in these regions.
As a result of its comprehensive domestic and regional knowledge and expertise, Patria Re has established a strong niche position in Mexico and Latin America, which allows the company to selectively accept profitable businesses, while maintaining a diversified product portfolio tailored to specific markets. This strategy has resulted in favorable underwriting results in recent years, and Patria Re has been able to enhance its risk-adjusted capitalization.
Partially offsetting these strengths is Patria Re’s limited financial flexibility, elevated expense structure, which is driven by acquisition costs associated with its portfolio mix, concentration of equity holdings in its investment portfolio and exposure to frequent and severe catastrophic losses. In addition, Patria Re’s risk profile has changed in recent years as a result of its exposure to European and Asian risks. While this affords Patria Re some additional geographic diversification in its operations, the company is accepting risk in relatively new markets. A.M. Best will continue to closely monitor Patria Re’s experience with these contracts for any adverse developments.
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
Ricardo Longchallon, 908-439-2200, ext. 5676
[email protected]
or
Peter Dickey, 908-439-2200, ext. 5053
[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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