Latest news with #Strength
Business Wire
4 days ago
- 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.
Business Wire
4 days ago
- Business
- Business Wire
AM Best Affirms Wellabe's Excellent Financial Strength Rating for Fifth Straight Year
DES MOINES, Iowa--(BUSINESS WIRE)--For the fifth year in a row, the independent credit rating agency AM Best has affirmed Wellabe's Financial Strength Ratings (FSR) of A (Excellent) and held the stable outlook for its six insurance company subsidiaries. 'For 96 years, our customers have counted on us to always be here. The affirmation of our excellent financial strength is a testament to our ability to continue to uphold that promise and be a trusted provider both for our customers and distribution partners,' said Dave Keith, chief executive officer of Wellabe. According to AM Best, the rating affirmations of Wellabe's insurance company subsidiaries reflect the group's balance sheet strength, which AM Best categorizes at the strongest confidence level. The stable outlooks reflect the continued expectation of Wellabe's balance sheet strength, supported by its risk-adjusted capitalization, which is also expected to remain at the strongest level. 'I am honored to be leading a passionate and talented team who is focused on executing our business strategy with a top-line growth plan and risk-aware culture. Wellabe remains a strong, stable, growing organization with the resources necessary to drive innovation and value while creating long-term sustainability to ensure we're here for the next 96 years,' Keith said. AM Best is a global credit 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 the latest Best's Credit Ratings, visit About Wellabe Let's do more, worry less, and make every day better. Since 1929, we have provided insurance solutions to help our customers protect their health and financial well-being. Every day we show we care through our shared values and doing what's right. We'll always be here helping people be well so they can prepare for tomorrow and live better today. Learn more at
Yahoo
5 days ago
- Business
- Yahoo
AM Best Revises Issuer Credit Rating Outlooks to Negative for Oklahoma Farm Bureau Mutual Insurance Company and Its Subsidiary
OLDWICK, N.J., May 29, 2025--(BUSINESS WIRE)--AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of "bbb+"(Good) for the members of the Oklahoma Farm Bureau Group: Oklahoma Farm Bureau Mutual Insurance Company and its wholly owned subsidiary, AgSecurity Insurance Company, collectively referred to as Oklahoma Farm Bureau. The outlook of the FSR is stable. All companies are domiciled in Oklahoma City, OK. The Credit Ratings (ratings) reflect Oklahoma Farm Bureau'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 (ERM). The revision of the Long-Term ICR outlooks to negative from stable reflects pressure on Oklahoma Farm Bureau's operating performance assessment given multiple years of underwriting losses, which have been impacted by frequent and severe weather, inflation and increased cost of reinsurance. Consequently, operating performance metrics are no longer closely aligned with other adequately assessed rated carriers. While management has and continues to address the deterioration in the group's operating performance by implementing various corrective actions, including rate increases, and reunderwriting initiatives, the overall effectiveness of these actions remains to be seen. Oklahoma Farm Bureau's balance sheet strength, which AM Best assesses as very strong, continues to be supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), a conservative investment portfolio, relatively low reserve leverage and historically favorable reserve development. The group's limited business profile assessment is indicative of the concentration risk as a single-state writer in the state of Oklahoma, which leaves results susceptible to weather and regulatory risk. In addition, the limited business profile assessment reflects its high property lines exposure. However, the group is the largest domestic carrier in the state of Oklahoma and controls the largest share of the farm and ranch market in the state. Oklahoma Farm Bureau's ERM remains appropriate, inclusive of a formal ERM program that is appropriate for the complexity of the group's overall risk profile, as well as a comprehensive reinsurance program, which provides top-level limit well into its tail exposure. 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 Brinda Modi Shah Senior Financial Analyst +1 908 882 1767 Richard Attanasio Senior Director +1 908 882 1638 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
5 days ago
- Business
- Business Wire
AM Best Revises Issuer Credit Rating Outlooks to Negative for Oklahoma Farm Bureau Mutual Insurance Company and Its Subsidiary
BUSINESS WIRE)-- AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of 'bbb+'(Good) for the members of the Oklahoma Farm Bureau Group: Oklahoma Farm Bureau Mutual Insurance Company and its wholly owned subsidiary, AgSecurity Insurance Company, collectively referred to as Oklahoma Farm Bureau. The outlook of the FSR is stable. All companies are domiciled in Oklahoma City, OK. The Credit Ratings (ratings) reflect Oklahoma Farm Bureau'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 (ERM). The revision of the Long-Term ICR outlooks to negative from stable reflects pressure on Oklahoma Farm Bureau's operating performance assessment given multiple years of underwriting losses, which have been impacted by frequent and severe weather, inflation and increased cost of reinsurance. Consequently, operating performance metrics are no longer closely aligned with other adequately assessed rated carriers. While management has and continues to address the deterioration in the group's operating performance by implementing various corrective actions, including rate increases, and reunderwriting initiatives, the overall effectiveness of these actions remains to be seen. Oklahoma Farm Bureau's balance sheet strength, which AM Best assesses as very strong, continues to be supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), a conservative investment portfolio, relatively low reserve leverage and historically favorable reserve development. The group's limited business profile assessment is indicative of the concentration risk as a single-state writer in the state of Oklahoma, which leaves results susceptible to weather and regulatory risk. In addition, the limited business profile assessment reflects its high property lines exposure. However, the group is the largest domestic carrier in the state of Oklahoma and controls the largest share of the farm and ranch market in the state. Oklahoma Farm Bureau's ERM remains appropriate, inclusive of a formal ERM program that is appropriate for the complexity of the group's overall risk profile, as well as a comprehensive reinsurance program, which provides top-level limit well into its tail exposure. 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 Revises Issuer Credit Rating Outlooks to Negative for Oklahoma Farm Bureau Mutual Insurance Company and Its Subsidiary
OLDWICK, N.J., May 29, 2025--(BUSINESS WIRE)--AM Best has revised the outlook to negative from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of "bbb+"(Good) for the members of the Oklahoma Farm Bureau Group: Oklahoma Farm Bureau Mutual Insurance Company and its wholly owned subsidiary, AgSecurity Insurance Company, collectively referred to as Oklahoma Farm Bureau. The outlook of the FSR is stable. All companies are domiciled in Oklahoma City, OK. The Credit Ratings (ratings) reflect Oklahoma Farm Bureau'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 (ERM). The revision of the Long-Term ICR outlooks to negative from stable reflects pressure on Oklahoma Farm Bureau's operating performance assessment given multiple years of underwriting losses, which have been impacted by frequent and severe weather, inflation and increased cost of reinsurance. Consequently, operating performance metrics are no longer closely aligned with other adequately assessed rated carriers. While management has and continues to address the deterioration in the group's operating performance by implementing various corrective actions, including rate increases, and reunderwriting initiatives, the overall effectiveness of these actions remains to be seen. Oklahoma Farm Bureau's balance sheet strength, which AM Best assesses as very strong, continues to be supported by its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), a conservative investment portfolio, relatively low reserve leverage and historically favorable reserve development. The group's limited business profile assessment is indicative of the concentration risk as a single-state writer in the state of Oklahoma, which leaves results susceptible to weather and regulatory risk. In addition, the limited business profile assessment reflects its high property lines exposure. However, the group is the largest domestic carrier in the state of Oklahoma and controls the largest share of the farm and ranch market in the state. Oklahoma Farm Bureau's ERM remains appropriate, inclusive of a formal ERM program that is appropriate for the complexity of the group's overall risk profile, as well as a comprehensive reinsurance program, which provides top-level limit well into its tail exposure. 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 Brinda Modi Shah Senior Financial Analyst +1 908 882 1767 Richard Attanasio Senior Director +1 908 882 1638 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
