AM Best Affirms Credit Ratings of AVLA Perú Compañía de Seguros S.A.
The ratings reflect AVLAP’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
AVLAP is a
AM Best views AVLAP’s business profile as neutral. Since its creation in 2015, AVLAP has been able to capitalize on a guarantee market with limited capacity in
AM Best considers the company’s operating performance to be adequate despite its recent creation. AVLAP has been able to promote its products in a profitable manner and maintain adequate underwriting metrics since 2017; however, the operation remains small and needs to converge to an adequate and less volatile cost structure, for which adjustments are taking place at a group level. Operating performance and balance sheet strength are supported strongly by a panel of reinsurers with excellent security.
AVLAP’s balance sheet assessment is strong given its solid capital base for the risks it undertakes, as reflected in its strong risk-adjusted capitalization. The strong assessment also recognizes the willingness and proven history of capital contributions made by its shareholders to support AVLAP’s growth, with the latest capital contribution of PEN 8.5 million taking place in 2019.
The stable outlooks reflect the company’s growth prospects, supported by the willingness of its shareholders to continue to support the company’s commercial and financial development with capital contributions. In
Positive rating actions could take place if the company continues to develop its business in a profitable and planned fashion, while further strengthening its capital base and maintaining adequate underwriting. Negative rating actions could take place if the company fails to achieve its growth objectives profitably while at the same time negatively affecting its risk-adjusted capitalization. Additionally, if there are important capital outflows to its holding company that weaken AVLAP’s risk-adjusted capitalization, the ratings could be downgraded.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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Source: AM Best
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