AM Best

AM Best Assigns Credit Ratings to Seguros Reservas S.A.

 Olga Rubo, FRM
Senior Financial Analyst
+52 55 1102 2720, ext. 134

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Communications Specialist
+1 908 439 2200, ext. 5098


AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Seguros Reservas S.A. (Seguros Reservas) (Santo Domingo, Dominican Republic). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Seguros Reservas’ balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

Seguros Reservas’ balance sheet strength is underpinned by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The ratings also reflect its strong operating performance, driven by consistent profitability, coming from a diversified book of business and contained underwriting leverage, and the company’s affiliation with Banco de Reservas de la República Dominicana, Banco de Servicios Múltiples (Banco de Reservas), the largest bank in the Dominican Republic.

Partially offsetting these positive rating factors is the strong competition in the Dominican Republic’s insurance market, which AM Best believes could pressure the company’s profitability and market share, the company’s high dividend payout ratios and an ERM framework that has room for further sophistication.

Seguros Reservas underwrites life and non-life business, and is one of the leading insurers in the Dominican Republic, currently holding a 14.2% market share as of June 2022.

In 2021, fire insurance continued to represent the company’s main line of business, accounting for 40% of gross premiums, followed by auto (25.9%) and life (13.6%), with the remainder (20.5%) in other lines of business. The company has shown disciplined underwriting in a highly competitive market, consistently reporting profitability that compares favorably with its closest competitors. In addition, investment income has remained stable, further contributing to positive bottom-line results.

Seguros Reservas’ risk-adjusted capitalization stands at strongest level, as measured by BCAR. Adjusted capital has grown at a compound annual growth rate of 20.7% during the past six years, and AM Best expects this trend to continue supported by sound underwriting, prudent dividend and investment policies, as well as an effective cost containment strategy. Furthermore, Seguros Reservas continues to benefit from operating efficiencies afforded by Banco de Reservas.

Positive rating actions are not expected in the medium term. Negative rating actions could occur if the company’s risk-adjusted capitalization deteriorates to a level no longer supportive of the current ratings. Negative rating actions could also take place as a result of a sustained deterioration of the company’s operating performance metrics to levels no longer supportive of the strong assessment.

The methodology used in determining these ratings is Best’s Credit Rating Methodology (Version Nov. 13, 2020), 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 .

Key insurance criteria reports utilized:

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

  • Understanding Global BCAR (Version June 30, 2022)

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

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

  • Scoring and Assessing Innovation (Version March 5, 2020)

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: Not Rated

  • Date Range of Financial Data Used: Dec. 31, 2017-Dec. 31, 2021

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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AMB# Company Name
092870 Seguros Reservas S.A.