OLDWICK, N.J. , U.S.A.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of ďa-Ē of Afianzadora Insurgentes, S.A. de C.V. (AISA) and its affiliate, Afianzadora Aserta, S.A. de C.V. (Aserta). The outlook for all ratings is stable. The rating actions reflect AISA and Asertaís excellent risk-adjusted capitalization, strong underwriting results and favorable historical investment income. The ratings also recognize both companiesí affiliation as members of the financial group, Grupo Financiero Aserta, S.A. de C.V. (Grupo Financiero Aserta). All companies are domiciled in Mexico . These positive rating factors are derived from both companiesí clearly defined target markets, extensive distribution network, disciplined underwriting and credit risk management and strong servicing capabilities, which enables AISA and Aserta to leverage its broad-based expertise to develop and expand its leadership position in the surety marketplace. Partially offsetting these rating strengths are the companiesí overall earnings volatility in recent years, somewhat elevated expense structure and potential limited financial flexibility as a result of their private ownership structure. In 2012, AISA and Aserta continued strong underwriting and operating profitability, which it received in part from favorable overall earnings. Both companies have a proven track record of solid operating earnings, superior capital position and extensive local market knowledge. Additionally, the improved operating environment in recent years has outweighed the concentration and regulatory concerns. Factors that could lead to AISA and Asertaís ratings being upgraded are the continuation of long-term, consistently strong operating profitability and the maintaining of excellent risk-adjusted capital levels. Factors that could lead to a negative outlook or rating downgrades include unfavorable operating profitability trends, outsized investment losses and a significant decline in the companiesí risk-adjusted capital that would not be supportive of its current rating level. The methodology used in determining these ratings is Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís Credit Rating Methodology can be found at www.ambest.com/ratings/methodology . A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com . Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. A.M. Best Co. Marien Villegas , 908-439-2200, ext. 5222 Financial Analyst email@example.com or Steven Chirico , CPA, 908-439-2200, ext. 5087 Assistant Vice President firstname.lastname@example.org or Rachelle Morrow , 908-439-2200, ext. 5378 Senior Manager, Public Relations email@example.com or Jim Peavy , 908-439-2200, ext. 5644 Assistant Vice President, Public Relations firstname.lastname@example.org Source: A.M. Best Co.
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Elizabeth Vargas' Husband Marc Cohn Addresses Rumors
- Keurig Adds Peet's coffee, Alters Starbucks deal
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- U.S. to Relinquish Gov't Control Over Internet
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Some California Cities Seeking Water Independence
- Quiznos Files for Chapter 11