AM Best Affirms Credit Ratings of Assurant Daños México, S.A. and Assurant Vida México, S.A.

MEXICO CITY--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Assurant Daños México, S.A. (ADM) and Assurant Vida México, S.A. (AVM). The outlook of these Credit Ratings (ratings) is positive. AM Best also has affirmed the Mexico National Scale Rating (NSR) of “aaa.MX” (Exceptional) of ADM and AVM. The outlook of the NSR is stable.

The ratings reflect ADM’s and AVM’s balance sheet strength, which AM Best assesses as strong, as well as each company’s adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The positive FSR and Long-Term ICR outlooks reflect the company’s consistent reinforcement of its strong balance sheet strength while maintaining the strongest level of risk-adjusted capitalization on a consolidated basis, as measured by Best’s Capital Adequacy Ratio (BCAR), underpinned by positive bottom-line results in conjunction with strategies to become more efficient.

The ratings of ADM and AVM also reflect their affiliation and strategic importance to Assurant, Inc., the ultimate parent, as a steppingstone to grow in the Latin America market. The ratings also consider the solid reinsurance structure mainly supported by the group. ADM and AVM initiated operations in 2004 and are owned by Assurant Holding Mexico, S. de R.L. de C.V., which is part of Assurant, Inc. Distribution for both companies is based on sales through financial institutions, auto companies, telecommunications carriers, retailers and other channels.

ADM and AVM follow their group’s underwriting, ERM and corporate governance practices, receive reinsurance support and benefit from its brand recognition to expand their market share in Mexico. Both subsidiaries also benefit from their group’s capital contributions, when required, in support of growth targets.

In 2021-2022, ADM maintained its balance sheet strength at a strong level as the company continued to strengthen its capital base through the reinvestment of earnings. Premium growth during 2022 benefitted from a better sales performance in the company’s global auto, mobile, and home, retail and original equipment manufacture business lines, as well as commercial alliances with high profile distributors. As of December 2022, ADM has been able to maintain profitability through positive technical and underwriting results, and supported by an increase in investment income, partially resulting from the high interest rate environment.

For 2021 and 2022, AVM’s balance sheet strength was at a strong level, mainly supported by profitability. AVM’s underwriting results also benefitted from a reserve release in 2022. The company presented positive bottom-line results as of December 2022, backed by profitable underwriting and strengthen by investment income.

Factors that could lead to positive rating actions for ADM and AVM include a sustained reinforcement of its strong balance sheet strength, underpinned by risk-adjusted capitalization at the strongest level, as measured by BCAR, and favorable results in operating performance. Conversely, negative rating actions could take place if operating performance substantially deteriorated, resulting in a decline in risk-adjusted capitalization to a level no longer supportive of the current ratings.

Negative rating actions also could occur if the subsidiaries’ parental support or their strategic importance to the group deteriorates in AM Best’s view.

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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Ricardo Rodríguez

Financial Analyst

+52 55 1102 2720, ext. 139

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Salvador Smith
Senior Financial Analyst

+52 55 1102 2720 ext. 109

[email protected]

Al Slavin
Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

[email protected]

Source: AM Best