--International IFS at 'A-'; Outlook Stable;
--National IFS at 'AAA(bra)'; Outlook Stable.
KEY RATING DRIVERS
The IFS ratings of
The ratings also reflect the company's leading position in the Brazilian insurance market, consistent performance, diversified revenue base, strong distribution capacity underpinned by the wide agency network of Bradesco, and comfortable liquidity and capitalization ratios.
In 2013, total premiums and contributions grew 12% (18% in 2012), which allowed the company to maintain its leading position and overall market share (24.2% and 24.8% in 2013 and 2012, respectively). In the same period, life and pension segments continued to be the largest contributors to net earnings (60%), followed by health (17%), capitalization plans (which are a type of savings plan with a lottery feature) (12%), and others including auto and property/casualty (11%).
Leverage, as measured by the liabilities-to-capital ratio, at 9.1x, remains higher than that of its peers, because of the significant technical reserves for the life and pension products, which made up 88% of the total at year-end 2013. Fitch feels comfortable about the strength and conservatism of the reserving policy of
Additional information available at 'www.fitchratings.com' or 'www.fitchratings.com.br'.
--Insurance Rating Methodology (
--National Scale Ratings Criteria (
--Rating FI Subsidiaries and Holding Companies (
Rating FI Subsidiaries and Holding Companies
National Scale Ratings Criteria
Insurance Rating Methodology
Fitch Ratings Brasil Ltda.
Praca XV de Novembro, 20 - 401 B,
Source: Fitch Ratings
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