A.M. Best Upgrades National Scale Rating of Grupo Financiero Aserta S.A. de C.V.; Affirms Credit Ratings of Its Main Subsidiaries
The ratings reflect AISA’s and Aserta’s balance sheet strength, which
The ratings reflect AISA’s and Aserta’s excellent risk-adjusted capitalization, the group’s leading position in Mexico’s surety market, historical good consolidated operating performance through slow market dynamics and its seasoned management team. The ratings also recognize the companies’ affiliation as larger members of GFA, the largest surety group in
The group’s positive rating factors are derived from its surety companies’ strong surplus positions given their strong capital bases and sound underwriting practices in conjunction with solid reinsurance programs placed among highly rated reinsurance counterparties. AISA and Aserta have maintained positive bottom-line results despite the slow dynamics of Mexico’s surety industry during 2015, 2016 and so far in 2017.
In 2016, the surety market decreased 1.7% in real terms due to less public spending on infrastructure projects and the economic environment for investments which has remained slow. These conditions have limited overall growth; however, GFA’s surety companies grew 2.6% while maintaining positive operating performance despite higher administrative costs related to technology platform improvements. The companies continue to report positive bottom-line results and adequate profitability metrics in comparison with other companies in Mexico’s surety market. As of
GFA is well-protected by its reinsurance program and its contingency reserves. Its adequate ERM framework has allowed the company to effectively manage its exposures and make an efficient use of its capital to improve its solvency.
Positive rating actions could take place for AISA and Aserta if the companies successfully implement a geographic diversification strategy while consistently maintaining good profitability through adequate underwriting and risk-adjusted capitalization that supports the ratings. Factors that could lead to negative rating actions are shortfalls in the company’s projected performance in terms of profitability and capital generation. Furthermore, negative rating actions also could result from adverse scenarios in the surety market that translate into material deterioration of the company’s capital to levels that
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 (
Oct. 13, 2017 ) - Understanding Universal BCAR (
Oct. 13, 2017 ) - Available Capital & Holding Company Analysis (
Oct. 13, 2017 ) - Rating Surety Companies (
Oct. 13, 2017 ) - A.M. Best Ratings on a National Scale (
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. 22, 2016 . - Date of Financial Data Used:
June 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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Elí Sánchez, +52 55 1102 2720, ext. 108
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Source:
A.M. Best Affirms Credit Ratings of Independence Holding Company and Its Subsidiaries
A.M. Best Affirms Credit Ratings of Aserta Seguros Vida, S.A. de C.V., Grupo Financiero Aserta
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