AM Best Information Services

JULY 28, 2022 10:54 AM (EDT)

AM Best Affirms Credit Ratings of Atradius Seguros de Crédito, S.A.

 Salvador Smith
Senior Financial Analyst
+52 55 1102 2720, ext. 109

Eli Sanchez
Associate Director, Analytics
+52 55 1102 2720, ext. 107
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jeff Mango
Managing Director, Strategy & Communications
+1 908 439 2200, ext. 5204


MEXICO CITY - JULY 28, 2022 10:54 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent), the Long-Term Issuer Credit Rating of “a+” (Excellent) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of Atradius Seguros de Crédito, S.A. (Atradius Mexico) (Mexico City, Mexico). The outlook of these Credit Ratings (ratings) is stable.

The ratings of Atradius Mexico reflect its status as a member of the Atradius group, which on a consolidated basis has a balance sheet strength that AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The ratings reflect Atradius Mexico’s strategic importance to the overall Atradius group, given its leading position within Mexico’s credit insurance segment, its importance as a gateway to Latin America’s insurance markets, good financial flexibility derived from its strong capitalization, supportive reinsurance provided by the group, and its seasoned management team. These positive rating factors are offset partially by volatility in the company’s net income due to the intrinsic volatility in the credit insurance market.

The company benefits from its integration within the Atradius group, which allows it to leverage operations on the same practices and procedures, reinsurance, draft facilities and underwriting selection. In addition, its ERM practices show a high level of integration to Atradius N.V.

Atradius Mexico offers credit insurance in its domestic market and was ranked as Mexico’s largest credit insurer as of 2021. The three largest participants in this line of business hold more than 90% of the market share.

Even though the company’s bottom line was pressured historically by an unrealized capital loss and material claims pre-pandemic, Atradius Mexico’s financial performance has been enhanced significantly since 2020, driven by fine-tuning of underwriting and collection practices. The company’s continued profitability was reflected in a combined ratio of 64.5% and a return on equity of 12.9% as of year-end 2021, comparing favorably with its peers in Mexico’s credit insurance industry. AM Best expects Atradius Mexico’s profitability to continue and rely mainly on the company’s sound underwriting and expense control practices, as well as the high amount of commissions received by reinsurance that translate into negative acquisition costs and its consistent financial product, which leverages on the company’s long position in U.S. dollars.

Atradius Mexico’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) on a consolidated basis, was maintained at the strongest level, and as a result, the company maintains significant financial flexibility. Furthermore, AM Best expects the company to sustain its risk-adjusted capitalization level. Atradius Mexico’s reinsurance program is placed with Atradius Reinsurance Designated Activity Company, further demonstrating the support received by the group.

If there are positive rating actions taken on the main operating subsidiaries of Atradius N.V., as a result of a change in the key rating fundamentals of Atradius N.V.’s parent company, Grupo Catalana Occidente S.A., Atradius Mexico’s ratings likely would move in tandem. Likewise, if there are negative rating actions taken on the Atradius group, as a result of a sustained decline in operating performance or a sustained and material deterioration in Atradius N.V.’s consolidated risk-adjusted capitalization, Atradius Mexico’s ratings would mirror those same rating actions.

A change in AM Best’s perception regarding the actual or perceived level of strategic importance of Atradius Mexico to the Atradius group of companies also could impact the company’s ratings.

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:

  • AM Best’s Ratings On a National Scale (Version Oct. 13, 2017)

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

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

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

  • Rating Surety Companies (Version April 7, 2021)

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

  • Understanding Universal BCAR (Version June 30, 2022)

  • Understanding BCAR for U.S. Property/Casualty Insurers (Version May 26, 2022)

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: July 23, 2021

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

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
078635 Atradius Seguros de Crédito, S.A.