A.M. Best Affirms Credit Ratings of QBE de México Compañía de Seguros S.A. de C.V.
The ratings reflect QBE de Mexico’s balance sheet strength, which
QBE de Mexico’s balance sheet strength is underpinned by a risk-adjusted capitalization at strongest levels, as measured by Best’s Capital Adequacy Ratio (BCAR), also supported by a well-balanced reinsurance program backed by QBE Group subsidiaries and a continued conservative investment strategy. The ratings also recognize QBE de Mexico’s affiliation and strategic importance to its ultimate parent, QBE Insurance Group Limited, a leading property/casualty (P/C) insurer in
The company, founded in
QBE de Mexico’s historical capitalization, as measured by BCAR, remains at strongest levels supported by a capital infusion from its group in 2015 and positive bottom-line results in 2016. During the latter period, the company improved its underwriting performance based on positive effects derived from the implementation of Solvency II-type regulation and adjustments to its reinsurance program that substantially reduced QBE de Mexico’s retention on fire and other catastrophic lines of business. However, by third-quarter 2017, a series of non-recurring events involving miscellaneous run-off businesses assigned by the group and higher acquisition expenses, have pressured the company´s operating results. Even though volatility prevails, QBE de Mexico´s profitability during the past five years is reflected by an average return on equity of 5.3%. Furthermore,
The majority of QBE de Mexico’s reinsurance program is placed with
Key rating drivers that could lead to positive rating actions for QBE de
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:
- A.M. Best’s Ratings On a National Scale (Version
Oct. 13, 2017 ) - Catastrophe Analysis in A.M. Best Ratings (Version
Oct. 13, 2017 ) - Evaluating Country Risk (Version
Oct. 13, 2017 ) - Understanding Universal BCAR (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:
Dec. 16, 2016 - 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 © 2017 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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