Latest news with #MexicoNationalScaleRating
Business Wire
03-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Berkley International Compañía de Garantías México S.A. de C.V.
MEXICO CITY--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior), the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' (Superior) and the Mexico National Scale Rating (NSR) of ' (Exceptional) of Berkley International Compañía de Garantías Mexico S.A. de C.V. (BICGM) (Mexico City, Mexico). The outlook of the Long-Term ICR is positive while the outlooks of the FSR and NSR are stable. BICGM is a member of W. R. Berkley Insurance Group (Berkley Group), which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as strong operating performance, a favorable business profile and appropriate enterprise risk management (ERM). The positive outlook for the Long-Term ICR reflects the Berkley Group's favorable operating performance and balance sheet metrics. Berkley Group has grown its GAAP surplus organically over the most recent 10-year period. Additionally, Berkley Group has improved its financial leverage. These Credit Ratings (ratings) reflect BICGM's integration with its parent company, W. R. Berkley Corporation (W. R. Berkley), in terms of corporate goals, underwriting, ERM and capital commitments, as well as the substantial reinsurance support from its group through the Berkley Insurance Company (BIC). BICGM was formed in November 2016 and is one of W. R. Berkley's two Mexico subsidiaries. The company received regulatory approval to underwrite surety business in June 2017 and issued its first policy that same month. During 2023, BICGM also requested regulatory approval to underwrite guarantee insurance. With this new line of business, management decided to start 2024 under BICGM, which offers a mix of administrative products in the surety segment, and a lesser portion of credit and judicial products. The company expects to start offering guarantee insurance in 2026. BICGM is backed by a comprehensive reinsurance contract with BIC. BICGM's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is derived from its sound capital position, strengthened further by the comprehensive reinsurance contract with BIC, a growing capital base due to reinvestment of earnings and capital injection in 2023. Furthermore, AM Best recognizes W. R. Berkley's commitment to its subsidiaries in providing additional capital fungibility to the Mexico operation. BICGM has been able to grow its business volume during the past eight years. In 2023, BICGM presented significant premium growth, mainly driven by increased government construction activities, as well as the recent nearshoring phenomenon in the north of Mexico. During 2024, premium growth was lower than previous year, mainly caused by a slowdown of Mexico's economy and a contraction of the construction sector. The company takes advantage of the reinsurance support received from the Berkley Group, which has allowed BICGM to achieve premium sufficiency, and further strengthened its profitability through investment income. If positive rating actions are taken due to the ultimate parent's operating performance showing continued and sustained outperformance of the strong peer group, BICGM's ratings would mirror those actions. A positive rating action could also occur if the ultimate parent's balance sheet metrics continue to improve, underpinned by improvement in its financial leverage while maintaining organic surplus growth. Negative rating actions could occur to the Berkley Group's insurance operations if the financial position of the ultimate parent weakens, requiring either the withdrawal of capital from the various insurance companies, an increase in financial leverage, or a decline in interest coverage that is not supportive of the current ratings. BICGM's ratings would reflect any rating actions taken as a result of the aforementioned scenarios. 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
03-07-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Berkley International Seguros México S.A.
MEXICO CITY--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior), the Long-Term Issuer Credit Rating (Long-Term ICR) of 'aa-' (Superior) and the Mexico National Scale Rating (NSR) of ' (Exceptional) of Berkley International Seguros México S.A. (BISM) (Mexico City, Mexico). The outlook of the Long-Term ICR is positive while the outlooks of the FSR and NSR are stable. BISM is a member of W. R. Berkley Insurance Group (Berkley Group), which on a consolidated basis has a balance sheet strength that AM Best assesses at the strongest level, as well as strong operating performance, a favorable business profile and appropriate enterprise risk management (ERM). The positive outlook for the Long-Term ICR reflects the Berkley Group's favorable operating performance and balance sheet metrics. Berkley Group has grown its GAAP surplus organically over the most recent 10-year period. Additionally, Berkley Group has improved its financial leverage. These Credit Ratings (ratings) reflect BISM's substantial reinsurance support from its group through the Berkley Insurance Company (BIC). Additionally, the ratings factor in BISM's integration with its parent company, W. R. Berkley Corporation (W. R. Berkley), in terms of underwriting, ERM and capital commitments. BISM was formed in November 2016 and is one of W. R. Berkley's two Mexico subsidiaries. The company received regulatory approval for operations in June 2017 and issued its first policy in July of that same year. BISM offers a diversified slate of property/casualty products, backed up by treaty and facultative reinsurance contracts with BIC. BISM's strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), is derived from its sound capital position, further strengthened by the 95/5 percent quota share and excess of loss contracts provided by BIC. Furthermore, AM Best recognizes W. R. Berkley's commitment to its subsidiaries through additional capital fungibility to the Mexico operation. BISM has been able to grow its business volume during the past eight years. Management and underwriting teams have successfully navigated changes in the market's economic dynamics in recent years. The company continues to take advantage of the reinsurance support received from the Berkley Group, which allowed BISM to generate positive bottom-line results in 2024, marking the fifth time since BISM began operations. This performance is also underpinned by premium sufficiency and further strengthened by investment income. If positive rating actions are taken due to the ultimate parent's operating performance showing continued and sustained outperformance of the strong peer group, BISM ratings would mirror those actions. A positive rating action could also occur if the ultimate parent's balance sheet metrics continue to improve, underpinned by improvement in its financial leverage while maintaining organic surplus growth. Negative rating actions could occur to the Berkley Group's insurance operations if the financial position of the ultimate parent weakens, requiring either the withdrawal of capital from the various insurance companies, an increase in financial leverage or a decline in interest coverage that is not supportive of the current ratings. BISM's ratings would reflect any rating actions taken as a result of the aforementioned scenarios. 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
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
