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Business Wire
30-05-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of CESCE México, S.A. de C.V. and CESCE Fianzas México, S.A. de C.V.
MEXICO CITY--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Ratings of 'bbb' (Good) and the Mexico National Scale Rating of ' (Superior) of CESCE México, S.A. de C.V. (CESCEM) and its affiliate, CESCE Fianzas México, S.A. de C.V. (CESCEF). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Mexico City, Mexico. The ratings of CESCEM and CESCEF reflect the companies' balance sheet strength, which AM Best assesses as very strong, as well as their marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings of CESCEM and CESCEF also reflect their affiliation with Compañía Española de Seguros de Crédito a la Exportación, S.A. Compañía de Seguros y Reaseguros (CESCE), which provides underwriting and business expertise, policies and procedures, and reinsurance support. Partially offsetting these positive rating factors for CESCEM and CESCEF are the competitive market dynamics in Mexico's credit insurance and surety segments. CESCEM is 51% owned by CESCE's subsidiary, Consorcio Internacional de Aseguradores de Credito, S.A. (CIAC), and 49% owned by Banco Nacional de Comercio Exterior, a Mexico-based development bank. CESCEM specializes exclusively in credit insurance and ranks in the top five of Mexico's credit insurance segment. CESCEF began operations in 2011 and is wholly owned by CIAC. CESCEF currently has a small share of Mexico's surety market. The company's business portfolio is concentrated almost completely in administrative surety, which is consistent with the portfolios of other market participants. AM Best assesses the companies' business profile as limited given their concentration on one business line, with relatively small participation, in very competitive markets. AM Best assesses the companies' balance sheet strength as very strong, given their historical strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), denoting sound capitalization levels that effectively cover risk exposures. The companies' ERM is assessed as appropriate given their well-established practices and defined risk appetites substantially through a conservative underwriting and investment policy, as well as a comprehensive reinsurance program mainly placed with its parent and affiliates, with the remainder placed with high-quality counterparties. CESCEM's operating performance assessment remains as marginal. In 2024, the business volume slightly deteriorated, the claim levels returned to historical levels, the acquisition ratio continued benefiting from the inflow of reinsurance commissions, and the administrative ratio increased considerably. Nonetheless, profitability prevailed due to investment income. CESCEF's operating performance assessment is marginal due to sustained combined ratios that stand above premium sufficiency levels. The challenging growth environment faced in the surety sector, driven by the low volume of public projects, along with CESCEF's small market share, increases the vulnerability of the company's business model. AM Best will monitor the deployment of the company's strategy to strengthen operating performance and achieve consistent profitability. CESCEM's stable outlooks reflect AM Best's expectation that the company will maintain its balance sheet strength assessment at the very strong level as it continues with its prudent underwriting practices. Positive rating actions could occur if the company continues achieving a positive trend that denotes steady premium sufficiency in the medium term. Conversely, negative rating actions could occur if CESCEM's operating performance deteriorates to a level that affects its capital base. CESCEF's stable outlooks reflect AM Best's expectation that the company will maintain its balance sheet strength assessment at the very strong level, in line with prudent underwriting practices, while maintaining its current levels of risk-adjusted capitalization. Negative rating actions could occur as a result of CESCEF's negative bottom-line results eroding the company's capital base, either as a cause of increasing administrative expenses or lower investment income. Although unlikely, positive rating actions could occur if the company achieves a positive trend that denotes steady premium sufficiency in the medium term. 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
30-05-2025
- Business
- Yahoo
AM Best Affirms Credit Ratings of CESCE México, S.A. de C.V. and CESCE Fianzas México, S.A. de C.V.
MEXICO CITY, May 30, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Ratings of "bbb" (Good) and the Mexico National Scale Rating of " (Superior) of CESCE México, S.A. de C.V. (CESCEM) and its affiliate, CESCE Fianzas México, S.A. de C.V. (CESCEF). The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Mexico City, Mexico. The ratings of CESCEM and CESCEF reflect the companies' balance sheet strength, which AM Best assesses as very strong, as well as their marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings of CESCEM and CESCEF also reflect their affiliation with Compañía Española de Seguros de Crédito a la Exportación, S.A. Compañía de Seguros y Reaseguros (CESCE), which provides underwriting and business expertise, policies and procedures, and reinsurance support. Partially offsetting these positive rating factors for CESCEM and CESCEF are the competitive market dynamics in Mexico's credit insurance and surety segments. CESCEM is 51% owned by CESCE's subsidiary, Consorcio Internacional de Aseguradores de Credito, S.A. (CIAC), and 49% owned by Banco Nacional de Comercio Exterior, a Mexico-based development bank. CESCEM specializes exclusively in credit insurance and ranks in the top five of Mexico's credit insurance segment. CESCEF began operations in 2011 and is wholly owned by CIAC. CESCEF currently has a small share of Mexico's surety market. The company's business portfolio is concentrated almost completely in administrative surety, which is consistent with the portfolios of other market participants. AM Best assesses the companies' business profile as limited given their concentration on one business line, with relatively small participation, in very competitive markets. AM Best assesses the companies' balance sheet strength as very strong, given their historical strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), denoting sound capitalization levels that effectively cover risk exposures. The companies' ERM is assessed as appropriate given their well-established practices and defined risk appetites substantially through a conservative underwriting and investment policy, as well as a comprehensive reinsurance program mainly placed with its parent and affiliates, with the remainder placed with high-quality counterparties. CESCEM's operating performance assessment remains as marginal. In 2024, the business volume slightly deteriorated, the claim levels returned to historical levels, the acquisition ratio continued benefiting from the inflow of reinsurance commissions, and the administrative ratio increased considerably. Nonetheless, profitability prevailed due to investment income. CESCEF's operating performance assessment is marginal due to sustained combined ratios that stand above premium sufficiency levels. The challenging growth environment faced in the surety sector, driven by the low volume of public projects, along with CESCEF's small market share, increases the vulnerability of the company's business model. AM Best will monitor the deployment of the company's strategy to strengthen operating performance and achieve consistent profitability. CESCEM's stable outlooks reflect AM Best's expectation that the company will maintain its balance sheet strength assessment at the very strong level as it continues with its prudent underwriting practices. Positive rating actions could occur if the company continues achieving a positive trend that denotes steady premium sufficiency in the medium term. Conversely, negative rating actions could occur if CESCEM's operating performance deteriorates to a level that affects its capital base. CESCEF's stable outlooks reflect AM Best's expectation that the company will maintain its balance sheet strength assessment at the very strong level, in line with prudent underwriting practices, while maintaining its current levels of risk-adjusted capitalization. Negative rating actions could occur as a result of CESCEF's negative bottom-line results eroding the company's capital base, either as a cause of increasing administrative expenses or lower investment income. Although unlikely, positive rating actions could occur if the company achieves a positive trend that denotes steady premium sufficiency in the medium term. 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 Juan Pablo Castro Associate Financial Analyst +52 55 1102 2720, ext. 133 Olga Rubo, FRM, CPCU Associate Director +52 55 1102 2720, ext. 134 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
27-02-2025
- Business
- Yahoo
AM Best Affirms Credit Ratings of Fianzas Avanza S.A de C.V.
MEXICO CITY, February 27, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of "bbb" (Good) and the Mexico National Scale Rating of " (Superior) of Fianzas Avanza S.A de C.V. (Fianzas Avanza) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Fianzas Avanza's 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. The ratings of Fianzas Avanza also reflect its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), adequate reinsurance program and liquid investment strategy. Partially offsetting these positive rating factors are Fianzas Avanza's historic volatile performance, which has stabilized by the change in its strategy, the intense competition in Mexico's surety bond segment and the challenging economic environment. The company is Mexico-domiciled and began operations in 2017, initially underwriting fidelity. Since 2022, Fianzas Avanza's business portfolio has increased in administrative surety, which is consistent with other market participants. Based on gross premiums written, the company has a small share of Mexico's surety market. In addition, due to Fianzas Avanza's monoline nature, its business profile is considered limited. Fianzas Avanza's risk-adjusted capitalization stands at the strongest level and has been partially sustained through capital injections in the past. The company's overall profitability was historically driven by financial products, contained claims and reinsurance commissions, which offset its high operating expense structure. However, the company increased its risk retention away from fronting products and is supported by an established sales department that bolstered growth, as well as an enhanced reinsurance structure placed with highly rated counterparties. As a result, Fianzas Avanza's underwriting performance has been reflecting premiums sufficiency since 2023. Additionally, Fianzas Avanza posted a net income of MXN 36 million in 2024. Looking forward, AM Best expects the company to sustain this operating performance trend supported by prudent growth rate and well contained surety exposures. Although unlikely within the short term, positive rating actions could occur if Fianzas Avanza is able to maintain its current improving trend in profitability and as a consequence further strengthens its capital base. Negative rating actions could occur if the company's underwriting performance deteriorates substantially or if there is a significant increase in business risk, due to a high concentration in the construction sector or uncertainty with regard to the government's spending on infrastructure, which could impact the growth of the surety market. 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 Salvador Smith, CQF Associate Director, Analytics +52 55 9085 7506 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Alfonso Novelo Senior Director, Analytics +52 55 9085 7501 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
Associated Press
21-02-2025
- Business
- Associated Press
AM Best Upgrades Financial Strength Rating and Issuer Credit Rating of Virginia Surety Seguros de México, S.A. de C.V.
MEXICO CITY--(BUSINESS WIRE)--Feb 21, 2025-- AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to 'a' (Excellent) from 'a-' (Excellent) of Virginia Surety Seguros de México, S.A. de C.V. (VSSM). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. AM Best also has affirmed the Mexico National Scale Rating (NSR) of ' (Exceptional) of VSSM. The outlook of the NSR is stable. The ratings reflect VSSM's 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. The upgrading of the company's FSR and Long-Term ICR reflect the reinforcement of its balance sheet strength through the sustained strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), underpinned by consistent profitable results. The ratings of VSSM also factor in its recent affiliation and strategic importance to Assurant, Inc., the ultimate parent. VSSM is a subsidiary of Virginia Surety Company, Inc., a general underwriting entity part of The Warranty Group, Inc. (TWG). In 2017, TWG completed a merger agreement with Assurant, Inc., with the purpose of combining insurance operations in various jurisdictions, including the operation in Mexico. VSSM started operations in Mexico in January 2017, focused on the auto insurance line of business and other property/casualty business lines. VSSM also underwrites specialty products, offering coverage in cases of theft or accidental damage for consumer technology products, such as cellphones, photographic and sound equipment and home appliances. VSSM places its coverage products through its network of manufacturers, distributors and retailers. VSSM operates under the same management as Assurant Daños México, S.A. and Assurant Vida México, S.A., subsidiaries of Assurant, Inc. These companies operate separately, but do not compete against each other. Moreover, VSSM takes advantage of the operational synergies derived from being part of the Assurant group. Negative rating actions could take place if substantial deterioration in VSSM's operating performance or aggressive growth in its premiums leads to a drop in risk-adjusted capitalization to levels no longer supportive of its current ratings. Negative rating actions could also take place if AM Best considers that parental support of VSSM or the strategic importance to its group deteriorates. While positive rating actions are unlikely, factors that could lead to them for VSSM include favorable results in operating performance. 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. countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Associate Financial Analyst +52-55-1102-2720 ext. 117 [email protected] Smith, CQF Associate Director +52 55-1102-2720 ext. 109 [email protected] Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] KEYWORD: EUROPE LATIN AMERICA MEXICO CENTRAL AMERICA INDUSTRY KEYWORD: DATA ANALYTICS PROFESSIONAL SERVICES INSURANCE FINANCE SOURCE: AM Best Copyright Business Wire 2025. PUB: 02/21/2025 12:12 PM/DISC: 02/21/2025 12:13 PM
Associated Press
31-01-2025
- Business
- Associated Press
AM Best Affirms Credit Ratings of El Aguila, Compañia de Seguros, S.A. de C.V.
MEXICO CITY--(BUSINESS WIRE)--Jan 31, 2025-- AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent), the Long-Term Issuer Credit Rating (Long-Term ICR) of 'a-' (Excellent) and the Mexico National Scale Rating of ' (Exceptional) of El Aguila, Compañia de Seguros, S.A. de C.V. (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable. These ratings reflect El Aguila's balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect El Aguila's support from its parent company (including continuous capital contributions), Great American Insurance Company, which currently has an FSR of A+ (Superior) and a Long-Term ICR of 'aa-' (Superior), each with a stable outlook. El Aguila was established in Mexico in 1994 and is a wholly owned subsidiary of Great American Insurance Company. Since 2016, El Aguila has diversified into other property/casualty lines besides the motor business, targeting small- and medium-size enterprises in the commercial segment through an independent network of local distribution partners. Given its small size, the company shows a greater geographic concentration than its peers, making it more vulnerable to market conditions in its main regional markets within Mexico. The company focuses on having higher renewal rates than those registered by its main peers, making heavy investments in advertising and direct sales channels in comparison with traditional distribution in Mexico's auto insurance segment, which is typically done through agents, car agencies and bancassurance alliances. In 2023, the company's portfolio grew 18% year-over-year and is expected to expand approximately 7.5% by the end of 2024, which is in line with expectations, as the company recovers from negative bottom-line results in previous years. Challenges for El Aguila in 2023 included high acquisition costs in its auto line, the creation of catastrophe reserves and the impact of Hurricane Otis on its overall portfolio. As of December 2024, the company has shown signs of recovery and profitable results, amid continuous support from its parent company in the form of capital contributions. El Aguila's risk-adjusted capitalization is strong, as measured by Best's Capital Adequacy Ratio (BCAR), with underwriting risk standing as the main component for required capital. In 2023 and 2024, the company benefited from capital contributions by its parent company to support its capital position after two years of consecutive negative results. A key factor going forward for AM Best's assessment of balance sheet strength will be the reinsurance recoverable generated by the effects of Hurricane Otis and the premium leverage to policyholder's surplus. Negative rating actions could occur if the company's capital base and risk-adjusted capitalization deteriorate to levels that no longer support the ratings, resulting from the materialization of execution risk or limitations in its business profile. Positive rating actions are unlikely in the short term, but they could occur if El Aguila sustains improvements in underwriting results and risk-adjusted capitalization in a steady fashion. A negative change in AM Best's perception regarding the actual or perceived level of El Aguila's strategic importance to the Great American Insurance Company group could also impact the company's ratings. CONTACT: Sebastian del Rio Associate Financial Analyst +52 55 1102 2720, ext. 117 [email protected] Rubo, FRM, CPCU Associate Director +52 55 1102 2720, ext. 134 [email protected] Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] SOURCE: AM Best Copyright Business Wire 2025. PUB: 01/31/2025 11:32 AM/DISC: 01/31/2025 11:32 AM
