AM Best

AM Best Affirms Credit Ratings of Seguros El Roble, 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 25, 2023 12:57 PM (EDT)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Seguros El Roble, S.A. (El Roble) (Guatemala). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect El Roble’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The stable outlooks reflect AM Best’s expectation that El Roble will continue to perform in a profitable manner while it continues to strengthen its capital base. In addition, the stable outlooks recognize the company’s strategy to prioritize profitability over market share in a competitive marketplace.

El Roble, which was established in 1972, is the largest insurer in Guatemala, with a market share of 22.4%. Its portfolio is composed mainly of non-life products (83%), as of December 2022, with the remainder (17%) tailored for the life insurance market. On a net basis, the accidents and health line of business represents 46% of the company’s premium portfolio, with 29% in property/casualty lines and the remaining 25% in life insurance business. Bicapital Corporation, a Panama-based private financial group that has financial services operations, including banking, insurance, and asset management, in Guatemala, Honduras, El Salvador, the Bahamas, Panama and the United States, owns El Roble. El Roble ranks No. 1 in accidents and health and auto in Guatemala.

AM Best views the company’s business profile as neutral, based on El Roble’s market leadership and its capacity to adjust the terms of its offerings through 2021, while aiming at higher diversification in lines and distribution channels in 2022 and 2023. In addition, El Roble’s market-leading position has allowed it to outperform market growth rates continuously for the past 10 years while sustaining diversification in products and distribution channels.

AM Best’s stable market segment outlook on Guatemala’s insurance industry recognizes the good growth prospects for the country’s economy given its macroeconomic stability; as of December 2022, Guatemala’s USD 1.3 billion insurance market ranked as the third largest in Central America.

El Roble’s balance sheet strength is assessed at the strongest level, as the availability and quality of its capital are well-positioned for the company’s risk profile. In 2022, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), remained stable as the company continued to post positive net results and making dividend payments. Historically, El Roble’s reinsurance program and ERM capabilities have been effective in protecting its balance sheet.

AM Best assesses El Roble’s operating performance as strong due to its capacity to maintain constant growth in its net income backed by solid underwriting. Strategic adjustments have allowed El Roble to navigate different cycles of the market. AM Best acknowledges that 2023 will be a challenging year with regard to competition, but the company has full capacity to undertake these challenges.

Positive rating actions could take place if El Roble’s balance sheet strength continues to benefit from the consistency in its risk-adjusted capital derived from the company’s prudent capital management.

Negative rating actions could take place if El Roble’s operating performance renders negative results, either from deterioration in underwriting quality or market conditions. Negative rating actions also could take place if AM Best’s assessment of El Roble’s balance sheet strength is impacted unfavorably by macroeconomic conditions that affect the company, its parent or Guatemala.

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)

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

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

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

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: June 15, 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.

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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
078173 Seguros El Roble, S.A.