AM Best Assigns Credit Ratings to Southbridge Compañía de Seguros Generales S.A.

Business Wire

MEXICO CITY--(BUSINESS WIRE)--
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Southbridge Compañía de Seguros Generales S.A. (Southbridge) (Santiago, Chile). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Southbridge’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM), as well as the ongoing support it receives from being part of the Fairfax Financial Holdings Limited (Fairfax) [TSX: FFH] group of companies.

Southbridge is a property/casualty (P/C) insurer, incorporated on May 6, 1980, in Santiago, Chile. Formerly known as AIG Chile Compañía de Seguros Generales, the company changed its name when it was acquired by Fairfax in July of 2017.

Southbridge is authorized to underwrite insurance and reinsurance, and the company is focused on non-life products. The company enjoys wide brand recognition in corporate lines, which account for 63% of its net written premium portfolio, followed by personal lines (37%). Southbridge ranks sixth within the P/C segment in Chile, holding 5.9% of the market, based on gross written premiums. The company has improved its position during the past 10 years, moving up from 10th place in 2016. The company ranks first in financial lines, and 4th in property, casualty and marine, as of September 2025. The neutral business profile assessment recognizes Southbridge’s experienced management team, brand recognition and position as a top performer within Chile’s highly competitive non-life market.

Southbridge’s balance sheet strength assessment is very strong, underpinned by the company’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Southbridge has been able to continuously grow its capital base through the reinvestment of earnings, which have been consistently achieved through profitable underwriting and strengthened by investment income. The very strong assessment also reflects Southbridge’s reinsurance structure, placed with highly rated entities, soundly set to protect its balance sheet.

Southbridge’s operating performance is characterized by its profitability. The company consistently achieves premium sufficiency through strong risk selection and positive investment results. Southbridge has been able to improve its bottom-line results steadily since 2020, from USD 6.7 million to USD 25.1 million by year-end 2025, driven by prudent underwriting and a consistent focus on profitability. AM Best expects this positive trend to continue, as Southbridge implements its strategy and expands operations.

The appropriate assessment of Southbridge’s ERM recognizes its robust risk management systems, guidelines and committees, well-defined risk appetite and tolerances.

The ratings recognize Southbridge’s affiliation with Fairfax.

The stable outlooks reflect the ability of Southbridge to maintain a profitable operation while it continues strengthening its capital base. The outlooks also reflect the continued support of the Fairfax group.

Negative rating actions could take place if significant capital outflows, due to extensive dividend payments or underwriting losses, erode the capital base of Southbridge, to a point that it does not support the very strong assessment. Negative rating actions could also take place if, in AM Best's opinion, the strategic importance of Southbridge to its ultimate parent diminishes. Positive rating actions could occur if Southbridge demonstrates a consistent trend of risk-adjusted capitalization at the strongest level, while continuing to grow its capital base.

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.