AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of 'a-' (Excellent) of
AM Best also has affirmed the Mexico National Scale Rating (NSR) of 'aaa.MX' (Exceptional) of ADM and AVM. The outlook of the NSR is stable. Both companies are domiciled in
The Credit Ratings (ratings) reflect
The positive outlooks on the FSR and Long-Term ICR reflect the company's consistent reinforcement of its strong balance sheet strength while maintaining risk-adjusted capitalization assessed at the strongest level on a consolidated basis, as measured by Best's Capital Adequacy Ratio (BCAR), underpinned by positive bottom-line results in conjunction with strategies to become more efficient.
The ratings of ADM and AVM also reflect their affiliation and strategic importance to
ADM and AVM initiated operations in 2004 and are owned by Assurant Holding Mexico,
ADM and AVM follow their group's underwriting, ERM and corporate governance practices, receive reinsurance support and benefit from its brand recognition in order to expand their market share in
In 2020 and 2021, ADM maintained its balance sheet strength at strong levels, as the company continued to strengthen its capital base through the reinvestment of earnings. Premium growth during 2021 benefited from the reopening of retail and commercial activity, as well as commercial alliances with high profile distributors. ADM has been able to maintain profitability as of
For 2020 and 2021, AVM's balance sheet strength was at a strong level, mainly supported by profitability. AVM's underwriting results benefited from a reserve release during 2021. The company presented positive bottom-line results as of
Factors that could lead to positive rating actions for ADM and AVM include a sustained reinforcement of its strong balance sheet strength underpinned by risk-adjusted capitalization at the strongest level, as measured by BCAR, and favorable results in operating performance. Conversely, negative rating actions could take place if operating performance substantially deteriorated, resulting in a decline in risk-adjusted capitalization to a level no longer supportive of the current ratings.
Negative rating actions also would occur if the subsidiaries' parental support or their strategic importance to the group deteriorates in AM Best's view.
The methodology used in determining these ratings is Best's Credit Rating Methodology (Version
Key insurance criteria reports utilized:
AM Best Ratings On a National Scale (Version
Catastrophe Analysis in AM Best Ratings (Version
Evaluating Country Risk (Version
Understanding Global BCAR (Version
Scoring and Assessing Innovation (Version
View a general description of the policies and procedures used to determine credit ratings. For information on the meaning of ratings, structure, voting and the committee process for determining the ratings and monitoring activities, please refer to Guide to Best's Credit Ratings.
Previous Rating Date:
Date Range of Financial Data Used:
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