A.M. Best Downgrades Issuer Credit Rating of Seguros Inbursa S. A.
OLDWICK, N.J.-(Business Wire)-September 28, 2009 - A.M. Best Co. has downgraded the issuer credit rating (ICR) to “a” from “a+” and affirmed the financial strength rating of A (Excellent) of Seguros Inbursa S. A. (Seguros Inbursa) (Mexico). The outlook for both ratings is stable.
The ratings reflect Seguros Inbursa’s solid risk-adjusted capitalization, historical profitability and diversified business profile. The ratings also reflect the company’s affiliation with Grupo Financiero Inbursa, one of the largest financial groups in Mexico.
Seguros Inbursa operates as a composite insurer of life and non-life business and remains one of the larger and more profitable domestic insurance companies in Mexico. The company’s focus on expense management, along with significant levels of investment income, has historically resulted in favorable overall earnings. This has enabled Seguros Inbursa to continue to enhance its risk-adjusted capitalization. In addition, the company continues to benefit from synergies and significant operating efficiencies as a result of its access to Grupo Financiero Inbursa’s vast financial and system networks.
The ICR downgrade reflects A.M. Best’s concerns with Seguros Inbursa’s underwriting losses in key business segments and reliance on its investment income for its overall earnings. In addition, the Mexican insurance market remains very competitive, and Seguros Inbursa will be challenged to maintain profitability and market share.
For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
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