The Rating Outlook is Stable.
KEY RATING DRIVERS
PPS ratings are supported by its ample business scope and strong business position in
Worth mentioning that since end 2012, quarterly results from PPS have shown less volatility in the operating results, which have paved the way to enhance its performance and leverage ratios.
PPS' Gross Written Premiums growth remains aligned to the non-life insurance industry growth ratios (15.0% PPS vs 15.1% as of
PPS's subsidiaries are core on
Even when PPS' operational performance faced a deterioration during 2010 to 2013, its main profitability ratios remained competitive, due to the strong net financial incomes deriving from the solid performance of its life insurance subsidiary. Since the second quarter of 2013, PPS' performance has reflected the favorable effect of the underwriting, pricing and expenses corrective actions taken in previous year. As of
PPS' leverage ratios slightly increased during 2013; however, remain below local and global peers. As of
The Stable Outlook reflects Fitch's perception that the corrective measures taken by the senior management have improved its operational performance in the last quarters and will continue enhancing gradually in the short term.
Key rating triggers that may lead to an upgrade include sustainable improvement on PPS combined ratio under 100%, lower volatility in earnings, and better liquidity ratios over an extended period.
Key rating triggers that may lead to a downgrade include a decrease on its overall profitability with an ROAA below 1% and/or a substantial increase of its leverage ratios (financial debt above 20% and operating leverage above 2x.).
Additional information is available at 'www.fitchratings.com'
--'Insurance Rating Methodology' (November, 2013).
Insurance Rating Methodology
Source: Fitch Ratings
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