AM Best Upgrades Credit Ratings of Worldwide Medical Assurance, Ltd. Corp.
AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of
The ratings reflect WWMA’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The rating upgrades follow WWMA’s sustained balance sheet strength, underpinned by risk-adjusted capitalization maintained at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as AM Best’s expectations that profitability will continue to help increase the company’s capital base.
The ratings also reflect WWMA’s consistently strong operating performance, supported by sound underwriting practices and a conservative investment strategy, while maintaining its successful gradual expansion into other Latin American markets. These strengths are offset by the increased underwriting risk resulting from a change in the company’s retention profile, its ability to implement its growth targets and the highly competitive landscape in Latin America’s life and health insurance segments.
The company began operations in 1999 and has since grown successfully in its niche market, providing insurance for clients traveling overseas to receive medical attention. This is achieved through a mix of brokers, bancassurance and direct distribution channels. WWMA benefits from its partial ownership by KfW DEG, the German development bank, through its holding company,
WWMA’s model of optimizing the selection of medical care providers is backed up by a reinsurance program placed with highly rated counterparties, supporting its strategy of global expansion and further development of its book of business. As of
Historically, WWMA has maintained positive capital-creation capacity, which, along with a conservative strategy of reinvesting profits, has contributed to its strongest level of risk-adjusted capitalization, as measured by BCAR. Capital management is strengthened further by a capital contribution of
WWMA’s strong underwriting and stringent expense practices translate into strong premium sufficiency metrics. Moreover, WWMA’s synergies with its sister company in the
As of
Positive rating actions are not expected in the medium term. Negative rating actions could take place if significant changes in the company’s strategy cause a negative effect in its income-generating profile or if the risk-adjusted capitalization deteriorates to levels no longer consistent with the strongest assessment.
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 Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Source: AM Best
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