A.M. Best Affirms Credit Ratings of Grupo Mexicano de Seguros, S.A. de C.V.
The Credit Ratings (Ratings) reflect GMX’s balance sheet strength, which
The ratings also reflect GMX’s improved underwriting practices and reinsurance program placed among counterparties with a strong level of security and a well-planned business strategy, in line with a strong risk-adjusted capitalization level, as well as GMX’s affiliation with its immediate parent,
The company initiated operations in
During 2016, the company improved underwriting results through an important increase in premiums, in conjunction with continued positive performance of its liabilities segment, thus, enhancing overall profitability, as demonstrated by improvements in 2016 and expected 2017 combined ratios. Furthermore, adjustments to the company’s reinsurance program have reduced retention levels on fire and other catastrophe lines of business, which also contributed to reduce the volatility in underwriting results.
GMX’s management team has a solid track record in terms of implementing strategy and taking advantage of opportunities for innovation in Mexico’s insurance market given the increased competition.
GMX’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), improved and is supportive of its current ratings.
Factors that may lead to rating enhancements include sustained improvement in the company’s underwriting performance and material enhancements in its risk-adjusted capitalization.
Factors that may lead to negative rating actions include continued deterioration of underwriting results, a decline in balance sheet strength, according to BCAR, or a substantial and sustained lack of coverage for regulatory capital requirements.
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:
- Evaluating Country Risk (Version
Oct. 13, 2017 ) - Understanding Universal BCAR (Version
Oct. 13, 2017 ) - Catastrophe Analysis in A.M. Best Ratings (Version
Oct. 13, 2017 ) - Available Capital & Holding Company Analysis (Version
Oct. 13, 2017 ) -
A.M. Best's Ratings On a National Scale (VersionOct. 13, 2017 )
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Understanding Best’s Credit Ratings.
- Previous Rating Date:
Dec. 20, 2016 (FSR and Long-Term ICR);Oct. 13, 2017 (NSR) - Date of Financial Data Used:
Sept. 30, 2017
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 © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180111005934/en/
Associate Financial Analyst
[email protected]
or
Senior Director, Analytics
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
About three in ten US veterans use tobacco products
Walmart boosts starting pay to $11 an hour, offers bonuses
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News