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Best’s News & Research Service - December 14, 2018 11:08 AM (EST)

AM Best Affirms Credit Ratings of Pacífico Compañía de Seguros y Reaseguros S.A.

  • December 14, 2018 11:08 AM (EST)
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Mexico City //BestWire// - AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Pacífico Compañía de Seguros y Reaseguros S.A. (PCS) (Lima, Perú). The outlook of these Credit Ratings (ratings) remains stable.

The ratings reflect PCS’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The ratings of PCS also reflect the company’s strong market share in Peru’s insurance market, as well as its comprehensive and well-diversified reinsurance program. Limiting the ratings is the competitive landscape in Peru, which has a limited number of insurers when compared with more developed markets.

PCS is Peru’s second-largest insurer with a market share of 26.5%. As of October 2018, the company’s business portfolio was composed of 58% life and 42% non-life. Its ultimate parent is Peru’s largest financial holding company, Credicorp Ltd. [NYSE: BAP], which had USD 52.8 billion in assets as of December 2017.

A year after consolidating its life and property/casualty (P/C) business into PCS, the company has been able to strengthen its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). PCS benefits from risk mitigation achieved through diversification and a robust and comprehensive reinsurance program with highly rated reinsurers.

PCS has maintained its good operating performance post-merger, with life products naturally contributing to the result through investment products, while P/C products have performed significantly well with positive technical results. The company has been able to grow at a healthy rate, despite several market distortions, including catastrophe events, regulatory changes and important bids in the market, which can potentially distort overall growth in premiums too rapidly.

The stable outlooks reflect AM Best’s confidence that the company can maintain its current operating performance while constantly strengthening its capital base. The unification of its P/C and life business also have provided operating efficiencies that AM Best will continue to monitor, along with market events as they evolve.

Positive rating actions could take place if the company is able to improve its operating results in the medium term, mainly guided by its efficiency efforts, while materially improving its risk-adjusted capitalization.

Negative rating actions could take place if the company’s underwriting results weaken due to relaxed underwriting standards or a more aggressive risk appetite that could erode capital to levels that no longer support the net required capital for the risks the company faces.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of AM Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


  • Evaluating Country Risk (Version Oct. 13, 2017)

  • Understanding Universal BCAR (Version May 14, 2018)

  • Catastrophe Analysis in A.M. Best Ratings (Version Oct. 13, 2017)

  • Available Capital & Holding Company Analysis (Version Oct. 13, 2017)

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 Understanding Best’s Credit Ratings.


  • Previous Rating Date: Nov. 10, 2017.

  • Date of Financial Data Used: Oct. 31, 2018.

This press release relates to rating(s) that have been published on AM Best’s website. For additional rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page.

AM Best does not validate or certify the information provided by the client in order to issue a credit rating.

While the information obtained from the material source(s) is believed to be reliable, its accuracy is not guaranteed. AM Best does not audit the company’s financial records or statements, or otherwise independently verify the accuracy and reliability of the information; therefore, AM Best cannot attest as to the accuracy of the information provided.

AM Best’s credit ratings are independent and objective opinions, not statements of fact. AM Best is not an Investment Advisor, does not offer investment advice of any kind, nor does the company or its Ratings Analysts offer any form of structuring or financial advice. AM Best’s credit opinions are not recommendations to buy, sell or hold securities, or to make any other investment decisions. View our entire notice for complete details.

AM Best receives compensation for interactive rating services provided to organizations that it rates. AM Best may also receive compensation from rated entities for non-rating related services or products offered by AM Best. AM Best does not offer consulting or advisory services. For more information regarding AM Best’s rating process, including handling of confidential (non-public) information, independence, and avoidance of conflicts of interest, please read the AM Best Code of Conduct. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.



Peru International Latin America Press Release Insurance Best's Credit Rating Action


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