A.M. Best Affirms Credit Ratings of Pacífico Compañía de Seguros y Reaseguros S.A.
PPS’ ratings have been withdrawn as a result of its absorption by a subsidiary, El PACÍFICO VIDA Compañía de Seguros (PVS) in
PCS is Peru’s second-largest insurer with a market share of 25.4%. As of
The formation of PCS seeks to create operating synergies and improve capital management, a result that was reflected in its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). When compared individually with PVS and PPS, PCS recorded a larger reported surplus of approximately PEN1.9 billion, and also benefits from risk mitigation achieved through diversification and a robust and comprehensive reinsurance program with highly rated reinsurers. PCS’ operating performance also generated adequate metrics, as of
Since the previous rating review, Pacífico (now part of PCS) has taken measures to reduce administrative costs with the consolidation of operations.
Positive rating actions could take place if the company is able to improve its operating results in the medium term, mainly guided by its efficiency efforts, while materially improving its risk-adjusted capitalization. Negative rating actions could take place if the company’s underwriting results weaken due to relaxed underwriting or a more aggressive risk appetite that could erode capital to levels that no longer support the net required capital for the risks the company faces.
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 )
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:
Sept. 15, 2016 . - Date of Financial Data Used:
Aug. 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 © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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Elí Sánchez
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