AM Best

AM Best Affirms Credit Ratings of Seguros G&T, S.A. and Afianzadora G&T S.A.


Elí Sánchez
Director, Analytics
+52 55 1102 2720, ext. 122

Alfonso Novelo
Senior Director, Analytics
+52 55 1102 2720, ext. 107

Christopher Sharkey
Associate Director, Public Relations
+1 908 439 2200, ext. 5159

Al Slavin
Senior Public Relations Specialist
+1 908 439 2200, ext. 5098


MEXICO CITY - MAY 17, 2023 12:53 PM (EDT)
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Seguros G&T, S.A. (SG&T) (Guatemala). AM Best also has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Afianzadora G&T S.A. (AG&T) (Guatemala). The outlook of these Credit Ratings (ratings) is stable.

The ratings of SG&T reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings of AG&T reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings of AG&T also recognize its affiliation and importance to SG&T and GTC Investments, Ltd. (GTC).

SG&T was established in 1947 and is the second-largest insurer in Guatemala, with a market share of 14%. The company’s product portfolio is composed mainly of property/casualty (62%), accident & health (28%) and life (10%), as of December 2022. SG&T holds very competitive positions across most lines within Guatemala’s insurance industry due to its permanence and brand recognition. AG&T was established in 1977 as the sister company of SG&T to underwrite surety business separately from other insurance operations.

SG&T and AG&T are privately owned by GTC, the non-operating holding company of the Grupo Financiero G&T Continental financial conglomerate.

AM Best views SG&T and AG&T’s business profile as neutral, based on the companies’ top market position, their brand recognition and experienced management. AM Best’s stable market segment outlook on Guatemala’s insurance industry recognizes its economy’s dynamism to foster conditions for industry growth. The companies’ technical and managerial capabilities continue to support their strategy, mainly in core segments like individual motor and the health business.

AM Best assesses SG&T’s balance sheet strength at the strongest level, due to its capacity to protect its balance sheet as reflected in AM Best’s risk-adjusted capitalization assessment; these factors are driven by a sound capital management including a comprehensive reinsurance program, conservative investment portfolio and appropriate asset liability management practices. AG&T derives its very strong assessment on capitalization the same way as its sister company but remains limited by the volume of its capital. Both companies report consistently profitable results, which are reflected in their growing capital bases. Despite being subject to dividend payments, AG&T’s asset base has a conservative risk profile.

AM Best considers SG&T and AG&T’s operating performance as adequate. SG&T’s technical result for year-end 2022 remained positive, backed by improvements in Guatemala’s non-life segment. The adequate assessment also considers the company’s efforts to continue creating savings and efficiencies on the expense side while aiming to improve underwriting quality. AM Best will continue to monitor SG&T’s operating performance, as the competitive environment in Guatemala’s market continues to evolve.

As a surety company, AG&T’s business profile benefits from the ceded premium commissions derived from its reinsurance program. As of December 2022, AG&T has maintained good bottom line results of USD 3.3 million. AM Best believes this growth will continue to be managed within the company’s risk appetite while it maintains positive bottom line results.

The stable outlooks for SG&T’s ratings reflect the company’s technical capabilities to maintain profitable underwriting with a glide path for more disciplined underwriting in 2023.

The stable outlooks for AG&T’s ratings are derived from the company’s very strong level of balance sheet strength and conservative underwriting. The importance of the reinsurance program limits income volatility and facilitates a more balanced operating performance.

Negative rating actions could occur if SG&T’s operating performance deteriorates as a result of pressures in the quality of underwriting or from a downturn in the economic cycle. Negative rating actions also could also take place if the company’s risk-adjusted capitalization deteriorates due to catastrophic events substantially affecting its capital base.

For AG&T, negative rating actions could result from a substantial change in the reinsurance program that increases risk taking to levels not matching AM Best’s assessment for the company’s risk-adjusted capitalization or by constant losses. The ratings also could be affected negatively if AM Best’s view regarding support from SG&T or the group diminishes.

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 May 4, 2023)

  • Understanding Global BCAR (Version June 30, 2022)

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

  • Scoring and Assessing Innovation (Version Feb. 27, 2023)

For SG&T only:

  • Catastrophe Analysis in A.M. Best Ratings (Version March 10, 2023)

For AG&T only:

  • Rating Surety Companies (Version April 7, 2021)

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: April 13, 2022

  • Date Range of Financial Data Used: Dec. 31, 2016-Dec. 31, 2022

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.

If the ratings referred in this press release do not indicate a specific country suffix, it is understood that they are granted globally and not on a national scale.

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.

Related Companies

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AMB# Company Name
092736 Afianzadora G&T SA
078175 Seguros G&T, S.A.