The ratings reflect INS’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The positive outlook was maintained due to the still favorable operating performance metrics posted in 2018.
INS’ capitalization level of strongest is supported by a comprehensive and adequate reinsurance program, good operating performance and its position as the leading insurer in
INS is Costa Rica’s largest insurer with a market share of 72% as of
The positive outlooks on INS’ ratings reflect the still strong operating performance metrics posted in 2018, despite its deterioration in comparison with 2017 as shown in a larger loss and combined ratio. As of
Investment income, based on a conservative investment portfolio, has remained supportive of the company’s performance, favored by interest rates and foreign exchange rates. Net income stood at
AM Best expects INS to continue improving and consolidating its business guidelines by implementing its geographical diversification strategy progressively, which should offset increased competition in the voluntary segments. The company is in a good position to maintain its strong risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio, due to its good profitability and ERM practices, and adequate reinsurance with highly rated international reinsurers, which provides a buffer for variations in claim severity and catastrophic events.
Positive rating movements could occur if INS is able to improve or maintain its underwriting performance and operating efficiency while continuing to pursue further diversification of its revenue, improving its return metrics and maintaining its strong capitalization. Negative rating actions could occur if technical results deteriorate or there is a reduction in net income, or any loss that significantly affects the company’s profitability and capital generation.
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 Understanding 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.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
+52 55 1102 2720, ext. 108
Senior Director, Analytics
+52 55 1102 2720, ext. 107
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
Source: AM Best