Latest news with #CapitalAdequacyRatio
Yahoo
3 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of Nacional de Seguros S.A. Compañía de Seguros Generales
MEXICO CITY, May 30, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb" (Good) of Nacional de Seguros S.A. Compañía de Seguros Generales (Nacional de Seguros) (Bogota, Colombia). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Nacional de Seguros' balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect the company's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and the profitability Nacional de Seguros has achieved during its track record. Partially offsetting these positive rating factors is the size of the company, which limits business diversification given the inherent concentration risk, and its high dependence on reinsurance. Nacional de Seguros began operations in 2014 after acquiring Ecoseguros S.A., a company in voluntary liquidation, with fulfillment and liability insurance licenses granted by the Superintendencia Financiera de Colombia (SFC). Nacional de Seguros had less than a 1% market share in Colombia's property/casualty segment, as of December 2024, and is the fifth-largest company in the fulfillment insurance sector with an 8.2% market share. Nacional de Seguros' risk-adjusted capitalization stands at the strongest level, as measured by BCAR, and is supported by a comprehensive reinsurance program and its consistent historical profitability. Credit risk, driven by reinsurance recoverables, is the main factor that could impact the company's BCAR assessment. The company's business operations are focused exclusively on Colombia: 75% of premiums are generated in Bogota; 15% from Medellin; and 5% from other cities. Despite reporting fluctuations in gross premiums, the company has maintained a steady retention level, and constant profitability. Nacional de Seguros' underwriting metrics are characterized by contained loss ratios, and negative acquisition cost ratios due to its high ceding profile. The company's investment income has exhibited a stable trend in the past few years, moderately supporting Nacional de Seguros' income generation. Negative rating actions could occur as a result of ERM framework deficiencies, reflected by inadequate exposure management practices, or if the ERM framework becomes unsupportive of the current assessment by any other means. Negative rating actions also could occur if operating performance metrics deteriorate to the point of no longer being consistent with the adequate assessment or if adverse development of the underwriting portfolio or significant dividend payments erode the company's capital base and reduce risk-adjusted capitalization to a level that no longer supports the ratings. Although unlikely, positive rating actions could result from a successful consolidation of the company's business strategy, supported by prudent growth and underwriting practices. 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Olga Rubo, FRM, CPCU Associate Director, Analytics +52 55 1102 2720, ext. 134 Alfonso Novelo Senior Director, Analytics +52 55 1102 2720, ext. 107 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
3 days ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of Nacional de Seguros S.A. Compañía de Seguros Generales
MEXICO CITY--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of Nacional de Seguros S.A. Compañía de Seguros Generales (Nacional de Seguros) (Bogota, Colombia). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Nacional de Seguros' balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also reflect the company's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and the profitability Nacional de Seguros has achieved during its track record. Partially offsetting these positive rating factors is the size of the company, which limits business diversification given the inherent concentration risk, and its high dependence on reinsurance. Nacional de Seguros began operations in 2014 after acquiring Ecoseguros S.A., a company in voluntary liquidation, with fulfillment and liability insurance licenses granted by the Superintendencia Financiera de Colombia (SFC). Nacional de Seguros had less than a 1% market share in Colombia's property/casualty segment, as of December 2024, and is the fifth-largest company in the fulfillment insurance sector with an 8.2% market share. Nacional de Seguros' risk-adjusted capitalization stands at the strongest level, as measured by BCAR, and is supported by a comprehensive reinsurance program and its consistent historical profitability. Credit risk, driven by reinsurance recoverables, is the main factor that could impact the company's BCAR assessment. The company's business operations are focused exclusively on Colombia: 75% of premiums are generated in Bogota; 15% from Medellin; and 5% from other cities. Despite reporting fluctuations in gross premiums, the company has maintained a steady retention level, and constant profitability. Nacional de Seguros' underwriting metrics are characterized by contained loss ratios, and negative acquisition cost ratios due to its high ceding profile. The company's investment income has exhibited a stable trend in the past few years, moderately supporting Nacional de Seguros' income generation. Negative rating actions could occur as a result of ERM framework deficiencies, reflected by inadequate exposure management practices, or if the ERM framework becomes unsupportive of the current assessment by any other means. Negative rating actions also could occur if operating performance metrics deteriorate to the point of no longer being consistent with the adequate assessment or if adverse development of the underwriting portfolio or significant dividend payments erode the company's capital base and reduce risk-adjusted capitalization to a level that no longer supports the ratings. Although unlikely, positive rating actions could result from a successful consolidation of the company's business strategy, supported by prudent growth and underwriting practices. 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.
Business Wire
3 days ago
- Business
- Business Wire
AM Best Revises Issuer Credit Rating Outlook to Positive for Cooperativa de Seguros de Vida de Puerto Rico
BUSINESS WIRE)-- AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of C (Weak) and the Long-Term ICR of 'ccc' (Weak) of Cooperativa de Seguros de Vida de Puerto Rico (COSVI) (San Juan, Puerto Rico). The outlook of the FSR is stable. The Credit Ratings (ratings) reflect COSVI's balance sheet strength, which AM Best assesses as very weak, as well as its adequate operating performance, limited business profile and marginal enterprise risk management. The positive outlook on the Long-Term ICR is related to the expected continued efforts to improve risk-adjusted capitalization in the near term, as measured by Best's Capital Adequacy Ratio (BCAR). This is led by management's strategic initiatives, including organic growth over the last few years, as well as anticipated additional improvement in the company's overall risk management. While AM Best asserts that the balance sheet strength assessment is still very weak, recognizable material improvements have been made over the medium term, and surplus and risk-adjusted capital is expected to continue to improve going forward. COSVI's absolute level of capital continued to increase as of year-end 2024, by another 3.8% compared with the prior year, as a result of an operating income of almost $1 million. The company's risk-adjusted capitalization, as measured by BCAR, continued to improve slightly but remains assessed as very weak. Unadjusted financial leverage remains just within AM Best's tolerances, and quality of capital remains neutral to COSVI's ratings. AM Best notes that COSVI will also need to demonstrate a continued trend of executing its capital management plan along with additional support by the shareholders before any potential upward movement in the balance sheet strength assessment is contemplated. AM Best will continue to monitor progress closely on all initiatives presented. 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.
Yahoo
5 days ago
- Business
- Yahoo
AM Best Upgrades Credit Ratings of Asian Reinsurance Corporation
SINGAPORE, May 28, 2025--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to "bbb" (Good) from "bbb-" (Good) of Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Asian Re's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The rating upgrades reflect Asian Re's sustained improvement in operating performance in recent years, evidenced by a return-on-equity ratio of 9.4% in 2024 (2023: 4.6%). The company has achieved positive operating results in four of the last five years. Underwriting performance in 2020 was hampered by a reserve strengthening exercise and higher-than-expected claims experience. However, the combined ratio improved to 85.3% in 2024 (2023: 101.6%) following remediation actions undertaken by the company. The company's investment returns, arising mainly from interest income, have consistently supported operating earnings. Prospectively, AM Best expects Asian Re's operating performance to be supported by sound underwriting profitability and robust investment returns. Asian Re's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2024, as measured by Best's Capital Adequacy Ratio (BCAR), and is expected to remain at that level over the medium term. Notwithstanding, the company is viewed to have a relatively modest absolute capital base of USD 76 million at year-end 2024, as compared with regional reinsurance peers, which increases the sensitivity of its balance sheet to shock events. A significant offsetting balance sheet strength factor remains Asian Re's high-risk investment strategy, which includes the holding of a sizable balance of cash and deposits in a sanctioned country and, to a much lesser extent, in a country that historically defaulted on and subsequently restructured its sovereign debt. Although the company has been actively reducing its holdings of some of these assets in recent years, AM Best's view is this investment strategy exposes Asian Re to heightened credit and liquidity risks. AM Best views Asian Re's business profile as limited, reflecting its position as a regional non-life reinsurer, with a modest-sized gross premium base of USD 26 million in 2024. The company writes treaty and facultative business in Asia, the Middle East and Africa. The company continues to grow its book of business, with a focus on improved diversification by geography and line of business. Despite persistent market and regulatory challenges in some of the markets where it operates, Asian Re is expected to continue to implement several strategic initiatives and business partnerships that are aimed at expanding its underwriting portfolio and market presence over the medium term. AM Best considers Asian Re's ERM approach to be appropriate relative to the current size and complexity of its operations. The company continues to develop its risk management framework and has demonstrated improvements in its risk management capabilities over recent years. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. 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 specialising 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Sin Yee Chuah, CFA Senior Financial Analyst +65 6303 5022 Victoria Ohorodnyk Director, Analytics +65 6303 5020 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
AM Best Announces Availability of 2024 Annual Insurer Financial Data in Best's Capital Adequacy Ratio Model – P/C, US
OLDWICK, N.J., May 27, 2025--(BUSINESS WIRE)--AM Best has released 2024 annual financial data from insurers that have completed their filings to date for Best's Capital Adequacy Ratio (BCAR) Model – P/C, US. The BCAR Model product allows customers to evaluate an insurer's capitalization and risk profile using a model that is consistent with the methodology used by AM Best analysts to capture the combined impact of financial risks associated with adverse market conditions. For more information, visit the AM Best website or contact Business Development at (908) 439-2200, option 5, or sales@ 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 Copyright © 2025 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Maryrose Paar Director, Business Development +1 908 882 2218 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
