SEPTEMBER 09, 2022 01:14 PM (EDT)
AM Best Places Credit Ratings of Mercantil Seguros y Re and Mercantil Re Internacional Under Review with Negative Implications
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FOR IMMEDIATE RELEASE
MEXICO CITY - SEPTEMBER 09, 2022 01:14 PM (EDT)
AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” (Good) of Mercantil Seguros y Reaseguros, S.A. (Mercantil Seguros) and Mercantil Reaseguradora Internacional, S.A. (Mercantil Re) (both domiciled in Panama).
These rating actions follow the announcement that the group’s intermediate holding company, Mercantil Holding Financiero Internacional, S.A., has acquired Capital Bank, Inc. and its subsidiaries in Panama, including insurer Optima Compañia de Seguros S.A. Mercantil Holding Financiero Internacional, S.A. runs the group’s international operations and is controlled by ultimate parent Mercantil Servicios Financieros Internacional.
AM Best expects the transaction to expand the group´s domestic footprint in Panama’s insurance and financial services industries. The under review with negative implications status pertains to the uncertain impacts on Mercantil Seguros and Mercantil Re´s balance sheet strength assessments, as well as integration risk. AM Best will continue to monitor the transaction as it evolves and receives customary regulatory approvals.
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 www.ambest.com/ratings/methodology .
Key insurance criteria reports utilized:
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