AM Best Affirms Credit Ratings of Armour Secure Insurance S.A. de C.V.

MEXICO CITY--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of B (Fair), the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb” (Fair) and the Mexico National Scale Rating (NSR) of “a.MX” (Excellent) of Armour Secure Insurance S.A. de C.V. (Armour) (Mexico). The outlook of the FSR is stable, while the outlook of the Long-Term ICR and NSR is positive.

The Credit Ratings (ratings) reflect Armour’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

The positive outlook on the Long-Term ICR and NSR reflects the corrective actions taken on financial leverage at the holding company level, which was derived from changes in the organizational structure of the group.

The strong balance sheet assessment reflects Armour’s capital base, consistently strengthened through the reinvestment of earnings. Armour has been able to sustain a profitable domestic operation through its underwriting results and investment income.

Armour’s business profile is limited due to its concentration in the niche market of title insurance in Mexico, coupled with challenges ahead for the real estate market there amid Mexico’s weakened economy.

AM Best’s view of the company’s ERM is marginal due to concerns regarding governance and availability of information at its holding company, Trebuchet Group Holdings Limited.

Positive rating actions could take place if Armour’s holding company maintains a prudent growth strategy and stabilizes its structure and capital management in AM Best’s view. Negative rating actions could take place if operating performance deteriorates to the point of affecting the company’s risk-adjusted capitalization.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Inger Rodriguez
Associate Financial Analyst

+52 55 1102 2720, ext. 108

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Elí Sánchez

Associate Director, Analytics

+52 55 1102 2720, ext. 122

[email protected]

Al Slavin
Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

[email protected]

Source: AM Best